Nestlé strengthens its leadership in emerging markets by starting construction of a new USD 200 million factory in Indonesia.
The new factory in Karawang, West Java, is due to begin production in early 2013.
It will produce Cerelac infant cereals, Milo chocolate malt drinks and, eventually, Dancow milk powder.
The new Nestlé factory will help satisfy Indonesian consumers’ increasing demand for nutritious, branded products at affordable prices.
“Our decision to invest USD 200 million in Karawang is consistent with the growth in demand and our confidence in the rapidly developing economy of Indonesia,” explained Arshad Chaudhry, President Director of Nestlé Indonesia.
“We are very optimistic about the growth opportunities in Indonesia. It has a large, progressive population and the economic environment is very conducive for growth.”
‘Improve income and livelihoods of society’
The Karawang factory, Nestlé’s fourth factory in Indonesia, will also benefit the community by creating jobs for over 600 people.
Nestlé sees this as part of its approach to corporate social responsibility; an approach the Company calls Creating Shared Value.
“Nestlé’s responsibility is not only to provide consumers with high-quality, nutritious products, but also to create value along our value chains,” Mr. Chaudry continued.
“The new project will give positive contribution for growth of the industry and economy, provides new employment opportunities, which in turn improving income and livelihoods of the society,” the Honorable M.S. Hidayat, Minister of Industry of the Republic of Indonesia, emphasized at the official groundbreaking ceremony.
Benefiting farmers and communities
The factory investment comes after the recent launch of Nestlé’s Cocoa Plan in Indonesia.
The Plan seeks to create a sustainable supply chain for the cocoa industry, and at the same time, helping farmers and their communities.
Nestlé is also helping the dairy industry. Around 32,000 dairy farmers now supply milk to the Company’s Kejayan factory in East Java.
In partnership with the Indonesian Milk Procurement and Dairy Development Department, farmers have improved their practices and as a result, can now sell their milk for a higher price because it is of better quality.