Nestlé (Malaysia) Bhd will invest over RM100 million to expand its Milo factory in Chembong, Negeri Sembilan, subsequently establishing the factory as the world’s largest Milo manufacturing centre of excellence.
In a statement, company CEO Alois Hofbauer explained that manufacturing operations in Petaling Jaya (PJ) will be consolidated with the Chembong plant, and production at that location is set to grow as the source point of domestic and international Milo supply. Currently, the plant exports to over 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 the capacity of the factory. This will help us to better meet growing local and export demand,” he said as cited from Malay Mail.
Subsequently, 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 Nestlé’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 the 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.
Sources: malaymail.com, coconuts.co