Nestlé Philippines to put up new plant in Batangas

MANILA, Philippines - Nestlé Philippines said yesterday it will   put up a new plant in Batangas to complement its four other plants in the country, totally dispelling reports that the world’s biggest food group is planning to shift its factories in the Philippines and Malaysia to Indonesia to be closer to raw material sources.

Trade and Industry Secretary Jesli A. Lapus said yesterday he has spoken with Nestlé chairman and chief executive officer John Miller who told him that Nestlé Philippines has no plans to transfer its operations to Indonesia.

Indonesian daily Kontan earlier reported that Nestlé planned to relocate its factories in Malaysia and the Philippines to Indonesia, and cited Nestlé’s Indonesia spokesman Brata T. Hardjosubroto as saying details of the relocation would be announced in November.

Lapus said Miller informed him that Nestlé Philippines is in fact planning a major expansion with a new plant in Batangas and capacity expansion in the company’s four existing plants in the country. “He (Miller) says there will be no reduction in existing or future investments of the company in the Philippines, that include existing product lines,” Lapus said.

At the same time, Lapus said that the Nestle head office in Geneva has confirmed that some product lines will be shifted but that was it. Lapus said he is not privy as to which lines will be shifted and when this will happen. He said he is also not sure if the closed Philippine lines will be transferred in Indonesia.

The outgoing secretary likewise said he is certain that Nestle will not just close down their operations here unceremoniously. “That would need a lot of planning and study because Nestle is a big firm. They are not in the red that they need to make decisions immediately,” Lapus said.

The Company has four manufacturing facilities in the country: the Cagayan de Oro Factory which manufactures Nescafé and is the Nestlé Group’s Asean supply center for filled milk powder; the Cabuyao factory which manufactures milk, nutrition, beverages, and food and is the Nestlé Group’s Asean supply center for infant nutrition products; the Lipa Factory which manufactures MILO and is the Nestlé Group’s Asean supply center for breakfast cereals, andthe recently commissioned Pulilan factory, which manufactures Nestlé ice cream and chilled products.