KUALA LUMPUR: Nestle Malaysia will invest more than RM100 million (US$24 million) to expand its Milo factory in Negeri Sembilan, making it the world's largest Milo manufacturing centre.
In a statement, Nestle said it will be moving all existing Milo manufacturing operations from its Petaling Jaya (PJ) factory to consolidate operations at the Chembong factory.
CEO Alois Hofbauer said the expanded factory in Chembong would be an integral part of the company’s business, supplying Milo domestically and contributing exports to more than 20 countries.
“Through the concentration of our Milo operations and our investment of over RM100 million into the Chembong factory, we will be able to further upgrade production facilities, improve operational efficiencies and scale up capacity of the factory.
“This will help us to better meet growing local and export demand,” he said.
Meanwhile, Lactalis, a global leader in the dairy business with a presence in over 100 countries, would acquire and take over operations of the PJ factory as well as Nestle's market-leading chilled dairy business for RM155.3 million.
Hofbauer said the company remains positive on the Malaysian market and it looks forward to unlocking more growth opportunities in the future.
"We see great potential that these investments will allow us to strengthen our focus on strategic core businesses that can deliver good long-term growth and are aligned with evolving consumer needs.
“At the same time, this initiative will pave the way for the chilled dairy business and PJ factory to flourish under the new leadership of Lactalis,” he added.