Cereal Partners Worldwide investing in Malaysia

by Eric Schroeder
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VEVEY, SWITZERLAND — Cereal Partners Worldwide (C.P.W), a joint venture between Nestle S.A. and Minneapolis-based General Mills, Inc., will invest 35 million Swiss francs ($39.8 million) over the next two years to build a new breakfast cereals facility in Malaysia.

The facility, which is expected to begin production in 2012, will make Nestle breakfast cereal brands such as Koko Krunch, Honey Stars, Cookie Crisp, Koko Krunch Duo and Milo. The products will be shipped to consumers in Malaysia and exported to Singapore, Indonesia and Thailand.

Located in Chembong, Negeri Sembilan, the 69,965-square-foot facility will enable the local production of Nestle breakfast cereals for the first time in Malaysia, Nestle said. The cereals currently are being imported. The plant will be located next to an existing Nestle confectionery facility.

“In addition to spreading the production base throughout the region, Malaysia was selected based on the readily available quality local ingredients as well as for the country’s investment friendly environment and infrastructure,” said Frits van Dijk, executive vice-president of Nestle and zone director for Asia, Oceania, Africa and the Middle East. “Having a factory in Negeri Sembilan also means that we are producing the breakfast cereals right here in Malaysia, which is one of the most important markets in the region. This will create hundreds of direct and indirect jobs, so benefiting Malaysian society.”

Nestle said the facility will source up to 80% of its raw materials from local suppliers, will be built based on policies for environmental sustainability adopted by both partners in the C.P.W. venture, and will be in full compliance with environmental legislation.

In addition to the facility in Malaysia, C.P.W. operates two other plants in Asia: one in Lipa, in the Philippines, and one in Tianjin, China.

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