COMPANY WILL USE PROCEEDS TO INVEST IN WORLD’S LARGEST MILO PLANT IN NEGERI SEMBILAN
Global food product producer Nestle is offloading its landmark factory and chilled dairy and manufacturing business in Petaling Jaya, Selangor, to make its Milo factory Chembong, Negeri Sembilan, the largest of its kind the world.
Nestle (Malaysia) Bhd said that it will invest RM100 million from the proceeds of the RM155.3 million it will earn from the sale of the PJ factory and business.
National daily, The Star, reported that Nestle will be selling the business to the to subsidiaries of the Lactalis group for the above-mentioned sum.
The sale includes the factory along with its manufacturing fixed assets, as well as all of Nestle’s businesses relevant to the manufacturing chilled dairy products, cold sauces and the packing of milk powder at its Petaling Jaya factory.
Nestle Malaysia said the sale was in line with its efforts to consolidate its Milo operations in its factory in Chembong. The expansion exercise it has planned for its factory would effectively make in the largest Milo factory in the world.
“Through the concentration of our Milo operations and our investment of over RM100mil 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,” Nestle (Malaysia) chef executive officer Alois Hofbauer explained.
The Chembong Milo plant currently supplies Milo domestically as well as exports Milo products internally to over 20 countries in the region.