Nestle increases capacity with RM110 mln upgrade

03-08-2009

Nestle Malaysia Berhad’s RM110 million upgraded manufacturing facilities at its Shah Alam complex are ready for its new regional soluble coffee plant for Nescafe which will almost double its current capacity. The company is now be able to produce 80 percent more coffee at its newly expanded facilities and also has the option of producing high-end products under the Nescafe range.

This translates into an equivalent of 6.5 billion cups of Nescafe a year, with about 50 percent of the production exported to the region and other parts of the world and the remaining 50 percent for local consumption.
   
“The conducive business environment here has encouraged Nestle to invest further in the country,” said Nestle Malaysia’s managing director Sullivan O’Carroll at the launch of the upgraded facilities here today.
   
“The company’s success can be partly attributed to the government’s close collaboration with the private sector, offering competitive incentives for foreign direct investment,” he said.
   
Nescafe was introduced as instant soluble coffee to the world in 1938 and in Malaysia in the 1950s.
   
In April this year, Nestle announced that it had allocated RM320 million as capital expenditure with the focus on upgrading its coffee and non-dairy creamer factories.
   
A sum of RM110 million was used for the coffee factory upgrade and RM80 million for the non-dairy creamer upgrade while the remainder was allocated for improving other product lines.

The latest upgrade came after an earlier one in July 2007 in which the company invested RM100 million to enhance technology and manufacturing facilities at its production complex here.
   
Nestle’s executive vice president Jose Lopez said with the country’s political stability, attractive tax incentives and skilled workforce, the group decided on Malaysia for its regional manufacturing centre for Nescafe.
   
“The new centre reflects our confidence in this market and our long-term perspective which looks beyond the economic difficulties of the day,” Lopez said.
   
“The plant reflects more than just an important investment to expand our business but also our commitment to the country where we have operations for 97 years,” he said.
   
The Shah Alam complex, which covers 82,000 square metres with a built-up area of 47,500 square metres, produces Nestle’s range of liquid drinks, soluble coffee, infant nutrition and adult cereal, beverages mixes and non-dairy creamers.