Fonterra has started construction of IDR357bn ($31.3m) dairy blending and packing plant in West Java, Indonesia, which will be its first manufacturing facility in the country.
The investment is said to be the largest for the company in ASEAN over the last decade.
The plant will allow the company to meet the demand for its Anlene, Anmum and Anchor Boneeto consumer brands.
Fonterra Asia Pacific, Middle East & Africa (APMEA) managing director Pascal De Petrini said that Fonterra Brands Manufacturing Indonesia Cikarang Plant will allow the company to meet the ever-growing demand for dairy nutrition in Indonesia.
"Demand for dairy in Indonesia is expected to grow by around 5 per cent each year to 2020, and our investment in this facility will help support this growth," Petrini added.
"This new blending and packing facility is the next step for our business in Indonesia, where we already have a strong and established presence. The investment will support the local expansion of Fonterra's consumer brands, and increase our on-ground capabilities which are critical to the long-term growth of our business."
Expected to be operational by March 2015, the facility will create around 150 jobs in the Cikarang and Bekasi regency communities. It will pack and blend 12,000 tons of advanced and base nutrition milk powder products each year.
Fonterra Brands Indonesia president director Paul Richards said that as well as the financial investment, Fonterra Brands Manufacturing Indonesia Cikarang Plant will bring Fonterra's world-class dairy manufacturing in design standards, knowledge, expertise and technology from New Zealand to Indonesia.
"It will also provide local staff with training and development opportunities in advanced food safety, quality and operational standards," Richards added.
Fonterra Brands Indonesia plays a key role in Fonterra's Asian business with 194 staff, and its dairy products are available at over 60,000 Indonesian outlets.
Image: Artistic rendition of Fonterra's dairy nutrition plant in West Java, Indonesia. Photo: courtesy of Fonterra Co-Operative Group.
