Nestle adds to investment in Indonesia

by Eric Schroeder
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VEVEY, SWITZERLAND — Nestle S.A. said it is investing another $100 million in Karawang, West Java in Indonesia for the construction of a facility that will make Milo chocolate malt drinks, Cerelac infant cereal, breakfast cereals and value-added liquid milks. Nestle in December said it would spend $100 million to build the facility, and earlier in 2010 announced plans to invest $100 million to increase production at its milk processing facility in Kejayan, East Java in Indonesia. In total, Nestle has unveiled plans to invest $300 million in Indonesia.

“We are very optimistic about the opportunities in Indonesia,” said Frits van Dijk, executive vice-president and zone director for Asia, Oceania, Africa and Middle East. “Indonesia has a large, progressive population and the economic environment is very conducive for growth.”

Construction in Karawang is expected to take place in two phases. The first, scheduled for completion by 2012, will include the creation of a 37-acre complex for the production of Milo chocolate malt drinks and Cerelac infant cereal.

The second phase, set for 2013 to 2015, will include expansion to accommodate other product categories, including breakfast cereals and value-added liquid milk.

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