Nestle, the world's biggest food group. (Photo: Reuters)
Nestle, the world's biggest food and beverage company, said Wednesday it had invested $100 million in a new factory in Indonesia to meet growing demand in Southeast Asia's biggest economy.
The investment comes on the heels of a $100 million expansion by the Switzerland-based group to double capacity at its East Java milk processing plant.
Nestle Indonesia president Arshad Chaudhry said the new multi-factory plant in West Java would create up to 300 jobs and use local materials to meet local demand.
"We're very optimistic about the growth opportunities in Indonesia. The business and economic environment is progressing," Chaudhry said. "Consumers have gained more purchasing power and the country has a large and growing consumer base."
Nestle, which employs about 2,600 people in Indonesia, said it would build its fourth plant in the country in two phases.
The first phase, which is scheduled to start next year and be completed in 2012, will produce chocolate malt drink and infant cereal products.
The second phase, which is scheduled for completion between 2013 and 2015, will see an expansion of other product categories.
Nestle's net profit in the first half of 2010 reached 5.2 billion dollars, as income grew strongest in Asia, Oceania and Africa -- up 11.7 percent -- followed by the Americas at 7.2 percent, the company said in August.