Fonterra has begun work to upgrade its two plants in Malaysia as part of the dairy giant’s plan to expand in what is one of its eight “most important global markets”.
The New Zealand-based group is spending MYR20m (US$4.8m) on changing the operating layouts and upgrading equipment at the factories, which are both located in the city of Shah Alam, 30 kilometres south-west of the country’s capital, Kuala Lumpur.
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Jose Miguel Porraz-Lando, managing director for Fonterra’s branded business in Malaysia and Singapore, said the move would also improve efficiency at the Susumas plant, which was set up in 1992, seven years before the second site.
“We’ve been supplying high quality dairy nutrition to Malaysians for generations. We are focused on being the most trusted source of dairy nutrition for all Malaysian families and we’re investing in local infrastructure, our brands and our people, to achieve this,” Porraz-Lando said.
Last week, Fonterra reported rising annual profits despite a decline in sales.
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