Nestlé has commenced the construction of a new beverage factory in Batang, Indonesia, which will manufacture Bear Brand liquid milk and ready-to-drink beverages, Milo and Nescafé.
The company has invested $220 million in the facility, which will create about 200 new jobs in the Central Java province.
The factory spreads across 20 hectares of land and will encourage further development of the dairy sector in the region, the food giant added.
'Growth Opportunities'
"Despite the COVID-19 pandemic, we are optimistic about the growth opportunities in Indonesia," said Ganesan Ampalavanar, the market head of Nestlé Indonesia.
"Our decision to invest in this new factory and to expand our capacity is a demonstration of Nestlé's long-term commitment to Indonesia. We aim to increase employment, to utilise local raw materials to the extent possible, to contribute to the development of the Indonesian economy and to produce high-quality, nutritious food and beverage products that are safe and tasty for our consumers."
Highest Environmental Standards
The new Nestlé Bandaraya factory, located at Batang Industrial Park, is scheduled to start commercial production in 2023. It will be equipped with state-of-the-art technology to ensure the highest environmental standards.
The company added that it has signed a memorandum of understanding with the regional government of Batang to develop a partnership with prospective dairy farmers and farmer groups to source additional raw materials for production.
Nestlé Indonesia has been partnering with dairy farmers and cooperatives in East Java since 1975, providing them with technical and financial assistance to improve the productivity and quality of fresh-milk production.
© 2021 European Supermarket Magazine. Article by Dayeeta Das. For more Supply Chain news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
