Nestlé gears up for P2-B expansion

President Arroyo visited the Nestlé export facilities in Cabuyao, Laguna yesterday as the company announced it would continue its expansion program in the country to cater to the growing export market abroad for its infant nutrition products.

During her visit, Mrs. Arroyo inspected the Nestlé state-of-the art proprietary technology in milk powder production and was briefed on the factory’s expansion efforts.

Nestlé recently announced that it will invest an additional P2 billion to further expand and upgrade its facilities in the country, in addition to the nearly P3-billion investments it announced last year.

"Our investments, exports, and expansion concretely demonstrate our continued confidence in doing business in the Philippines. Nestlé is here to stay," Nestlé Philippines chairman and CEO J.B. Santos said.

According to Santos, the bulk of the new investment will go to the continuing expansion and upgrade of its Cabuyao facilities to increase capacity for milk powder production. The Nestlé Cabuyao Factory is the Nestlé Group’s ASEAN Supply Center for infant nutrition products, exporting Lactogen to Nestlé companies in Indonesia, Singapore, Malaysia, Vietnam, Cambodia and Thailand.

The company expects to complete exports of about 20,000 metric tons of infant milk powder to Asean by end of 2002, valued at $50 million.

"Being an Asean Supply Center is a recognition of our world-class manufacturing capability and allows us to showcase the Filipino competence abroad. It also provides us access to the Nestlé group’s state-of-the-art technology in milk production which allows us to transfer advanced manufacturing knowledge and skills to our people," Santos said.

He said the company’s expansion efforts in Cabuyao have also fueled the local economy, providing jobs to thousands more in downstream industries that supply the factory with raw materials and services. In 2001, Nestlé Cabuyao factory paid P37.6 million in taxes to the province of Laguna. Total taxes paid to the Philippine government in 2001 amounted to about P5.2 billion.

"We are happy that in our own way, we help support the growth of our economy and uplift the lives of people in the communities where we operate," Santos said.

Nestlé has been operating the country for over a hundred years now. It produces and markets products under some of the country’s well-known brands such as Nescafé, Nido, Milo, Nestea, Maggi, Bear Brand, and Nestlé, among others. Its product range has expanded to include coffee, milk, infant nutrition, infant food, beverages, non-dairy creamer, food, ice cream and chilled dairy, breakfast cereals and confectionery.