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April 5, 2012

CHILE: Nestle opens dairy facility

Nestlé has opened a dairy facility in Chile a year after withdrawing from its joint venture plan with Fonterra in the country.

Nestlé has opened a dairy facility in Chile a year after withdrawing from its joint venture plan with Fonterra in the country.

The factory, part of Nestle’s continued development of its operations in the country, will produce a range of milk products and ingredients with “added nutritional value” for domestic consumption and for export to the US, Central America, the Middle East and Asia.

When fully operational, the factory, based in Osorno in southern Chile, will have a production capacity of 30,000 tonnes of milk powder, enabling Nestlé to meet what it claims is “increased demand for dairy products that offer a nutritional ‘plus'”.

The facility will provide 300 direct jobs and 1,500 indirect jobs. Nestle has invested over CHF127m (US$138m) in the plant. 

“This factory will produce dairy products with added nutritional value that meet the different needs of our consumers, both in Chile, Latin America and in other countries around the world,” said Nestle CEO Paul Bulcke.

“Through continuous investment and innovation we are always striving to provide our consumers with products that meet their nutritional needs at every stage of their lives.”

In November 2010, Nestle and Fonterra announced plans to establish a joint venture for chilled and liquid dairy products in Chile. Around six months later, however, both firms agreed to withdraw the application as the companies believed “the conditions to continue with the application were not appropriate”.

Nestlé has had a presence in Chile with dairy products since 1934. It currently has seven facilities, including this latest in Osorno. Brand sold in the country include; Savory ice cream, Sahne-Nuss chocolate and McKay biscuits.

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