Cereal Partners Worldwide (CPW), a joint venture between General Mills and Nestle, plans to invest CHF35m (US$39.8m) over the next two years to build a breakfast cereal factory in Malaysia.

The factory, which is due to begin production in 2012, will manufacture Koko Krunch, Honey Stars, Cookie Crisp, Koko Krunch Duo and Milo cereal for sale in Malaysia, Singapore, Indonesia and Thailand.

Located in Chembong, Negeri Sembilan, the 6,500 metre square factory will enable the local production of CPW breakfast cereals for the first time in Malaysia, which are currently being imported.

The new factory will source up to 80% of its raw materials from local suppliers, Nestle said today (26 April).

The new factory will be the third CPW cereals production centre in Asia. The two other factories are in Lipa, in the Philippines, and in Tianjin, China. They will maintain existing production capacities for their respective domestic markets, as well as for export to other Asian countries.