The Malaysian subsidiary of Swiss multinational Nestlé said it would stop selling sugar confectionery following a slump in domestic and export demand.
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In a statement, the company said it would stop the sales, marketing and distribution of sugar confectionery under Nestlé Products Sdn Bhd and will close a manufacturing plant of Nestlé Foods (Malaysia) Sdn Bhd located in Chembong, Negeri Sembilan.
Nestlé said it had conducted a review of its sugar confectionery business and decided that the unit was not making a large enough contribution, especially in view of the “strenuous drain” it imposed on the operating profits of Nestlé Foods, reported the Business Times.
Closing the plant and pulling the plug on the sugar confectionery business will land Nestlé with a one-time charge of RM31.9m (US$8.4m), the company said.
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