Nestlé may put up 2 more facilities in PH Construction of P4.3-B plant underway

SOURCE: Philippine Daily Inquirer
Posted date: November 23, 2010


MANILA, Philippines—Food and beverage giant Nestlé Philippines may put up two additional facilities on its 27-hectare property in Tanauan, Batangas within the next 10 years.


The two new facilities will complement the P4.3-billion non-dairy coffee creamer manufacturing plant that the company hopes to complete in March 2012.


President Aquino on Tuesday attended the ground-breaking rites for the company’s P4.3-billion plant in Batangas.


Once operational, the facility will produce Coffee Mate Non-Dairy Creamer and Bear Brand Powdered Milk products.


“We look forward to further expansion once we’ve gotten this phase complete,” Nestlé Philippines chair and chief executive John Miller said during Tuesday’s ground-breaking ceremony.


Since Coffee Mate and Bear Brand are both market category leaders, there is now a need to put up a new factory to boost the company’s manufacturing capability, Miller said.


Local demand for Bear Brand this year is seen to increase by 19 percent, while that for Coffee Mate is expected to grow by 18 percent.


Bear Brand exports, marketed under the brand name Everyday, will likewise post an estimated 38 percent growth this year.


“In 2011, Nestlé will celebrate 100 years in the Philippines. One hundred years of service to the Filipino consumer is a great source of pride within our company and it is fitting that most of the Tanauan factory’s construction will take place during Nestlé Philippines’ centennial, signifying our continuing commitment to the country,” Miller said.


“Our investments, in line with our corporate thrust of creating shared value for all stakeholders in society, give us the confidence to look forward to the next 100 years of nurturing Filipino families by offering nutritious health and wellness products,” he added.


Once operational, the Tanauan factory will generate employment for 170 individuals at the onset.


According to a Board of Investments approval issued in September, the new Nestlé plant had the potential to employ as many as 478 people.


Aside from the new Tanauan plant, Nestlé had also committed to invest in its existing factories in Cagayan de Oro City, Cabuyao in Laguna, Lipa in Batangas, and Pulilan in Bulacan.


Most of these investments were for technology and equipment upgrades.


Over the past five years, Nestlé’s investments in its local operations had reached almost P10 billion. Around 80 percent of this amount had been used to improve existing facilities.


The balance of the investments was spent on sales infrastructure, distribution, and information technology systems.


The company last year manufactured close to 500,000 metric tons of coffee, milk, beverages, non-dairy creamer, food, infant nutrition products, ice cream, chilled dairy, and breakfast cereals.


Average annual growth of the company’s Philippine business was placed at P4.6 billion. Sales from last year alone reached P86 billion.


For this year, Miller said, Nestlé’s four existing plants should have a turnover of around P95 billion. Abigail L. Ho, with a report from Bloomberg