Nestlé Indonesia Inaugurates USD 100 million Milk Processing Facility in East Java
In one of the company’s largest investments ever in Indonesia, Nestlé is doubling the capacity of its Kejayan factory in order to fulfill the Indonesian consumers demand for high quality nutritious milk products.
8 Mar 2010 --- Nestlé inaugurated the USD 100 million expansion of its milk processing facilities in Kejayan, East Java, Indonesia. Thanks to the investment, this facility will become one of Nestlé’s ten largest milk-processing plants in the world.
In one of the company’s largest investments ever in Indonesia, Nestlé is doubling the capacity of its Kejayan factory in order to fulfill the Indonesian consumers demand for high quality nutritious milk products.
This factory expansion will significantly increase Nestlé’s fresh milk intake from local dairy farmers as it grows from approximately 620,000 litres per day to more than one million litres per day in the next few years. Currently 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. The Kejayan plant has always stood as a symbol of Nestlé’s commitment to Indonesia and to the 30,000 dairy farmers of East Java which have been collaborating with us for over 30 years. Kejayan factory is expected to have a significant impact on the economic development of the surrounding area – an impact that Nestlé considers an example of ‘Nestlé Creating Shared Value, i.e. to create value for all stakeholders along its value chain”.
Minister of Industry of Republic of Indonesia, Mr MS Hidayat inaugurated the expansion and visited the new world class plant accompanied by Chairman of the Investment Board, Mr Gita Wirjawan, Governor of East Java, Mr Sukarwo and Regent of Pasuruan, Mr Dede Angga.
