Nestlé Phils. says it’s here to stay

Nestlé Phils. Inc. clarified yesterday that it was not stopping its operations in the Philippines and that the shutdown of its plant in Alabang, Muntinlupa was not due to financial difficulties.

The STAR, quoting the Department of Labor and Employment (DOLE), had reported the looming displacement of some 30,000 workers based on notices of closure and retrenchment filed by 1,314 companies in Metro Manila.

The DOLE report had included Nestlé Phils. Inc. as one of the companies experiencing financial difficulties.

But Nestlé clarified that the closure of one of its factories was part of its overall manufacturing strategy and was not caused by financial troubles.

The company said closure of its Alabang facility was part of the consolidation of its coffee manufacturing in the Cagayan de Oro factory – a move aimed at realizing a single manufacturing faci-lity for Nescafé in the country.

The consolidation required room for expansion and the installation of new technology and state-of-the-art facilities, which the Nestlé factory in Alabang could no longer provide.

As a result of the consolidation, the company closed its Alabang factory last May 31.

To ensure continuity of employment, Nestlé offered jobs to everyone formerly employed at its Alabang factory.

Of the 619 who were offered jobs in other Nestlé factories, 296 (48 percent) accepted while a 323 (52 percent) availed themselves of the generous redundancy package.

Nestlé, which has been operating in the country since 1899, has remained resilient and is able to cope with the current trading situation.

Chairman and chief executive officer JB Santos noted that while a number of companies have relocated their manufacturing operations abroad, Nestlé has found a way to continue and even strengthen operations in the Philippines.

"Nestlé has been in the Philippines for over 100 years now," Santos said in a statement. "The investments, expansion and exports demonstrate our commitment to support the growth of the Philippine economy in whatever way we can. We are here to stay."

Recently, the food company announced it was investing some P3 billion in the Philippines in the next two years. The bulk of investments will go into expanding its Cabuyao, Laguna and Cagayan de Oro factories, which would serve as ASEAN supply centers for infant nutrition and filled milk powder, respectively.

As supply centers, both factories are now exporting Philippine-manufactured products to Nestlé markets abroad. For 2001 alone, total Nestlé exports are expected to reach $72 million.