Malaysia: Nestle to strengthen presence with manufacturing expansion

Nestle’s Malaysia arm is to invest over 100 million MYR ($24 million) to expand its Chembong Milo production facility, investing in what the company describes as a “key manufacturing hub”.

According to Nestle, the Chembong facility expansion will establish the world’s biggest Milo manufacturing centre, with capacity to better meet growing local and export demand.

“This move is an investment to further strengthen our Nestle presence in Malaysia”, commented Alois Hofbauer, CEO of Nestle Malaysia. “The Milo plant in Chembong is an integral part of the Company’s business, supplying Milo domestically and contributing exports to over 20 countries”.

To facilitate the move, Nestle said it would be moving all of its existing Milo manufacturing operations from its Petaling Jaya factory, which is being acquired by Lactalis. Lactalis is assuming Nestle’s Malaysian chilled dairy business as part of its plan to establish Malaysia as the operations hub of its dairy business in south east Asia.

Source: Nestle