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Nestlé and General Mills invest €27m in new Malaysian cereal factory

By Helen Glaberson , 29-Apr-2011

Nestlé and General Mills’ joint venture Cereal Partners Worldwide (CPW) is investing €27m in a new Malaysian factory to enable the local production of Nestlé breakfast cereals in the country for the first time.

The new facility will produce well known Nestlé cereal brands for Malaysian customers. The products will also be exported to Singapore, Indonesia and Thailand, said the cereal makers.

Nestlé said the unit will be built based on CPW’s policies for environmental sustainability and, additionally, the manufacturer said it will source up to 80 per cent of its raw materials from local suppliers.

Frits van Dijk, Nestlé’s executive vice president and zone director for Asia, Oceania, Africa and the Middle East, said that Malaysia offered readily available quality local ingredients and an investment friendly environment and infrastructure.

The 6,500 meter square facility, which is due to begin production in 2012, will create hundreds of direct and indirect jobs, he added.

Other investments

The new factory will be the third CPW cereals production centre in Asia, with the group citing increased popularity of Nestlé breakfast products in the region.

The two other facilities are the Philippines and in China.

Nestlé has invested in a number of other new cereal factories across the globe this year.

In March, the company pumped €38m into a new Turkey cereal plant, and in February the company announced plans to put €30m into two new factories in South Africa, one of which will produce its Milo and Cheerio cereal products.

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