New Zealand dairy giant Fonterra has opened a new $37m blending and packing plant in Indonesia.
Said to be Fonterra's first manufacturing facility in the country, the plant uses the company's manufacturing design standards and technology.
The plant is capable of packing close to 16,000mt of dairy ingredients annually and it will allow Fonterra to meet growing demand for nutrition in the country.
The company says that the capacity is equivalent to nearly 87,000 packs of Anlene, Anmum, and Anchor Boneeto per day.
When fully operational, the plant will employ 160 local people.
The investment, which is Fonterra's largest investment in ASEAN in the past 10 years, will boost the growth of Fonterra's brands including Anmum, Anlene and Anchor Boneeto.
Construction on the plant at Cikarang in West Java commenced in March 2014.
Fonterra Asia, Middle-East, Africa managing director Johan Priem said: "The country's large and increasingly affluent population is looking for highly nutritious foods for all ages.
"This is fuelling dairy demand growth which is expected to increase by five per cent every year to 2020.
"The site also utilises Cikarang's dry port, allowing us to ensure all of our operations are located in one area. This will help us drive logistical efficiencies."
New Zealand Minister of Local Government, Social Housing and State Services Paula Bennett said that the new facility reflects the strength of the relationship between New Zealand and Indonesia.
"Our governments have set a target to grow two-way trade to NZD4 billion by 2024 and dairy continues to be a critical part of this relationship," added Bennett.
Image: The plant is capable of packing close to 16,000mt of dairy ingredients annually. Photo: courtesy of Fonterra Co-operative Group.
