Swiss food giant Nestlé has reaffirmed its commitment to growth in its south-east Asia, unveiling plans to invest CHF260m (US$238.4m) in the region during 2009.
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Speaking at a media conference at the end of his tour of south-east Asia, Nestlé CEO Paul Bulcke said that the company would continue to expand its business and manufacturing facilities in the region.
Over the last three years, Nestlé has invested over CHF550m in its ASEAN operations and, in 2008, Nestlé’s business ASEAN business posted 15% organic growth, with sales of around CHF5bn.
In Thailand, Nestlé will open a Nestlé Purina pet food and expand the existing Navanakorn facility, where the group produces milk and coffee products.
In Vietnam, Nestlé will invest a total of CHF13m during the current fiscal year. As part of his Asian tour, Bulcke opened the new Maggi production plant in the Dong Nai province in Vietnam. The investment will create over 800 jobs by 2010. The plant will meet the growing consumer demand for Maggi products in Vietnam, Cambodia and the Philippines, the company said.
In Malaysia, Nestlé has committed a capital investment of CHF85m for 2009 to meet the increasing demand for Halal products. Nestlé Malaysia is the company’s Halal centre of excellence and the investment will support the set-up of new regional plants for Nescafé and non-dairy creamer as well as the expansion of its Maggi facilities following the stronger export demands.
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By GlobalDataOver the last three years “significant investments” have been made in Singapore for the upgrade and expansion of the production facilities at the Jurong factory, Nestlé said. Another CHF3m will be invested in the market in 2009.
Meanwhile, in the Philippines, Nestlé’s investments in 2009 will amount to CHF72m and in Indonesia Nestlé will invest a further CHF29m during the year.
Commenting on the announcement, Bulcke said: “The ASEAN region is a very important part of the Nestlé business, and our continued commitment and on-going investments demonstrate our confidence in the region.”
