Nestle highlights ASEAN emphasis

by Staff
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SINGAPORE — Having invested 550 million Swiss francs in capital expenditures in the region over the past three years, Nestle S.A. will invest another 250 million Swiss francs ($229 million) in the ASEAN region in 2009, said Paul Bulcke, Nestle chief executive officer.

After touring the region (the Association of Southeast Asian Nations), Mr. Bulcke affirmed the company’s commitment to investing in the area. He held a media conference in Singapore June 13.

In 2008, the company experienced 15% organic growth in the region with sales of around 5 billion Swiss francs.

"Nestle has been operating in this part of the world for nearly 100 years," he said. "The ASEAN region is a very important part of the Nestle business."

In Vietnam, Nestle opened a new Maggi production plant in the Dong Nai province. Under the Maggi brand, Nestle sells soups, stocks, bouillon, instant noodles, seasonings, sauces and ketchup. The plant, located in the Dong Nai province in southern Vietnam, will create 800 jobs by 2010 and will supply customers in Vietnam, Cambodia and the Philippines.

Nestle will invest 85 million Swiss francs ($78 million) in Malaysia in 2009 with a focus on meeting growing demand for Halal products. New regional plants for Nescafe and non-dairy creamer will be supported by the investments as will expansion of its Maggi facilities.

Investments in the Philippines will total 72 million Swiss francs ($66 million) in 2009, and the company has made major investments in Singapore over the past three years to upgrade and expand production facilities at its Jurong factory.

After investing 130 million Swiss francs in Indonesia after the past two years, Nestle will invest another 29 million Swiss francs in 2009 ($27 million). The company is trying to meet growing demand by expanding its Kejayan milk factory in East Java.

Investments in milk and coffee production also are planned for Thailand. The company is expanding its Navanakorn facility where both milk products and coffee are produced. Additionally, Nestle is building a pet food factory in an Amata City Industrial Estate. The plant will supply pet food locally as well as to Indonesia, Malaysia, Singapore, the Philippines, South Korea, Taiwan and Hong Kong. Nestle will invest 56 million Swiss francs ($51 million) in Thailand in 2009.

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