Nestlé has inaugurated the expansion of its US$100m milk processing facility in the Indonesian region of East Java.
The expansion is one of the largest investments the firm has made in Indonesia and will make the facility one of Nestlé’s ten largest milk-processing plants in the world.
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The doubling of capacity at the Kejayan factory was made in a bid to fulfil consumer demand for “high-quality nutritious milk products”, the firm said on Thursday (4 March).
Nestlé’s said it hopes the expansion will “significantly” increase its fresh milk intake from local dairy farmers from around 620,000 litres per day to more than one million litres a day in the next few years.
Nestlé is supplied by around 30,000 dairy farmers grouped under 30 cooperatives in East Java.
At the inauguration, Arshad Chaudhry, president of Nestlé Indonesia, said: “This significant investment will open up tremendous opportunities for all suppliers in East Java and allow Nestlé to satisfy the growing demand for its milk products in Indonesia.”
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By GlobalDataThe production facility will produce the Lactogen and Dancow milk brands.
