Sri Muda Factory Investment Reinforces Nestlé Malaysia's Commitment

To Press Releases listShah Alam,Jul 8, 2013

July 8, 2013 – Nestlé Malaysia today officially started construction of the new Sri Muda Factory in Shah Alam, which will produce a variety of ready-to-drink liquid beverages to cater for the growing demand in the local market.

The factory, which will be adjacent to Nestlé Malaysia’s existing facility in Shah Alam, will see an investment of RM150 million for its first phase and is expected to be fully operational by May 2014. It will produce the company’s ready-to-drink liquid beverages, such as MILO, NESCAFÉ, Nestlé OMEGA, Nestlé Low Fat Milk and Nestlé Full Cream.

"In the last four years, we have seen significant growth for Nestlé ready-to-drink liquid beverages. This is mainly due to changes in consumer lifestyles, as people increasingly prefer on-the-go cold beverages. Today, close to 300 million serves of MILO and NESCAFÉ ready-to-drink beverages are consumed by Malaysians every year," said Alois Hofbauer, Region Head Nestlé Malaysia/Singapore at the event in Shah Alam, which was attended by José Lopez, Executive Vice President, Nestlé S.A., Operations and GLOBE and Tan Sri Dato' Seri Syed Zainol Anwar Jamalullail, Chairman of Nestlé Malaysia.

"This strong surge in demand has encouraged us to invest and expand our manufacturing operations here in Malaysia," Hofbauer added.

He further explained that the new manufacturing site demonstrates Nestlé’s strong commitment to continuously invest in Malaysia and support the Government in its vision towards attaining developed nation status by 2020.

Commenting on the competitiveness of the Malaysian economy and its sustainable growth, José Lopez said, "We at Nestlé are confident of the strength of the Malaysian market and economy - and this is clearly demonstrated today, as we formally start the construction of our latest manufacturing facility. We invest and work for the long term wherever we are present in the world, in a way which has a positive impact on our consumers, employees and suppliers."

Mr. Lopez added that the factory’s state-of-the-art technology would optimise capacity and efficiency, thus ensuring a higher productivity. He also highlighted the facility’s sustainability design features like heat and rain water recovery systems, to reduce energy and water usage and achieve Nestlé’s goal of producing tasty and nutritious food and beverages, while minimising the company’s environmental footprint.

Upon completion, the 16 000 m2 facility will directly employ a workforce of 160, and indirectly generate further job opportunities within its supply chain.