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Nestlé invests CHF99 million in factory expansion in Indonesia

The ground breaking ceremony of Nestlé’s fourth production plant in Indonesia in 2013.

The Swiss food giant has announced plans to invest CHF99 million (around $100 million) to expand three factories in Indonesia.

The goal is to increase Nestlé’s production capacity in the country by 25%, according to a company announcement on Wednesday.

The recipients of the funds will be three production plants in Karawang (West Java), Kejayan (East Java) and Panjang (Lampung). The main product lines that will receive a boost include beverage items like Milo chocolate drink, Nescafé ready-to-drink coffee and Bear brand milk, as well as Maggi food seasoning.

“Through this investment, we hope to increase the quality of raw materials as well as the productivity of farmers who supply to us,” said Dharnesh Gordhon, President Director of Nestlé Indonesia, in a press release.

Nestlé’s half-yearly report released last Friday stated that sales in Indonesia showed double-digit growth. The company has been operating in the south-east Asian country for 48 years.

Full story here
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