Nestlé Invests Over RM100m to Establish MILO Manufacturing Centre

MALAYSIA - Nestlé (Malaysia) Berhad is investing over RM100 million to expand its MILO factory in Chembong, Negeri Sembilan, in line with its strategy of driving strong, profitable and sustainable growth and investing in Malaysia as a key manufacturing hub for the Nestlé Group.
calendar icon 10 October 2018
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The expansion, which is part of its continuous drive to improve efficiency and enhance competitiveness, will see the Group establishing its Chembong Factory as the world’s biggest MILO Manufacturing Centre of Excellence.

To facilitate this, Nestlé Malaysia will be moving all existing MILO manufacturing operations from its Petaling Jaya (PJ) Factory to consolidate and expand MILO production at the Chembong Factory.

Mr Alois Hofbauer, Chief Executive Officer of Nestlé (Malaysia) Berhad said, "This move is an investment to further strengthen our Nestlé presence in Malaysia. The MILO plant in Chembong is an integral part of the Company’s business, supplying MILO domestically and contributing exports to over 20 countries.

"Through the concentration of our MILO operations and our investment of over RM100 million into the Chembong factory, we will not only be able to further upgrade production facilities and improve operational efficiencies, but also scale up capacity and make Chembong the biggest MILO Manufacturing Centre in the Nestlé world. This will help us to better meet growing local and export demand."

Subsequently, Lactalis, a global leader in the dairy business with a presence in over 100 countries will acquire and take over operations of the PJ factory as well as Nestlé’s market leading Chilled Dairy business. Lactalis plans to establish Malaysia as the operations hub of its Dairy business in ASEAN with plans to drive growth through an expanded portfolio of exciting new products.

"Nestlé remains positive on the Malaysian market and Malaysia as an export hub and we look forward to unlocking more growth opportunities in the future. We see great potential that these investments will allow us to strengthen our focus on strategic core businesses that can deliver good long-term growth and are aligned with evolving consumer needs. At the same time, this initiative will pave the way for the Chilled Dairy business and PJ factory to flourish under the new leadership of Lactalis," concluded Mr Hofbauer.

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