Nestlé to set up new manufacturing facility in Malaysia

Nestlé is establishing a new manufacturing facility in Shah Alam, Malaysia, with an investment of MYR150m ($45.9m), to meet the demand for its ready-to-drink beverages.

The factory, which will be fully operational in 2014, will manufacture Nescafé, Milo, and Nestlé Low Fat Milk ready-to-drink beverages, and will create 160 new jobs.

Nestlé stated that it has seen substantial growth in its ready-to-drink beverages in Malaysia over the past four years, where Milo and Nescafé brands are the market leaders in the segment.

Nestlé executive vice president and head of operations José Lopez said that the company had been present in Malaysia for more than 100 years and believes in the strength of the Malaysian market.

"We are committed to supplying our consumers here with a range of tastier and healthier products to suit their needs and preferences," Lopez added.

The facility will feature a number of sustainable design features including a rain water recovery system to lower water use and ultra-high-temperature (UHT) processing with built-in heat recovery to reduce energy consumption.

The new project comes after Cereal Partners Worldwide (CPW), a 50/50 joint venture between Nestlé and US-based General Mills, opened a new CHF35m ($37.77m) breakfast cereal manufacturing facility in Negeri Sembilan, Malaysia.

Nestlé entered the Malaysian market in 1912 as the Anglo-Swiss Condensed Milk Company in Penang and expanded to Kuala Lumpur in 1939.

Nestlé Malaysia currently manufactures products in seven facilities and operates from its head office in Mutiara Damansara.

The company offers more than 300 Halal products in Malaysia and its popular brands include Milo, Nescafé, Maggi, Nespray and Kit Kat.

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Image: The new factory will manufacture Nescafé, Milo, and Nestlé Low Fat Milk ready-to-drink beverages. Photo courtesy of Nestlé.