Fonterra invests $5m in upgrade at Malaysian milk powder factory

From: FoodBev

Fonterra has invested NZD 7 million ($4.82 million) in an upgrade to its milk powder manufacturing plant in Malaysia.

The investment will boost its manufacturing efficiencies at the Susumas site, on the outskirts of Kuala Lumpur. The upgrade will allow the plant to blend and pack around 30,000 metric tonnes of milk powder products a year – the equivalent of 1 billion serves of dairy.

The improved facility means Fonterra is better placed to meet growing demand for dairy – not just in Malaysia, but across 13 countries in Southeast Asia and the Middle East where the factory currently exports its products. The site will operate as ‘a regional hub’ for the New Zealand company.

Fonterra Brands Malaysia and Singapore managing director Jose Miguel Porraz Lando said: “Demand for dairy nutrition is growing fast across the region driven by the rising middle class and huge populations. The investment will go a long way to helping us meet this growing demand for dairy and cement our role as a leading regional dairy manufacturer and exporter.”

Porraz Lando was joined at the opening ceremony by New Zealand’s associate minister for economic development, Te Ururoa Flavell, who was in Malaysia to raise awareness of New Zealand business interests; as well as Malaysia’s deputy minister of international trade and industry, Ahmad Maslan.

Minister Flavell said: “Fonterra has a 40-year presence and history in Malaysia and is an example of a successful New Zealand business using Malaysia as a regional hub. It is a real pleasure to be here to witness the impact of Fonterra’s dairy business in Malaysia.”

And Minister Maslan added: “As the largest New Zealand investor in Malaysia, Fonterra Brands Malaysia plays an important role in facilitating the relationship between New Zealand and Malaysia.

“Over the last six years, Fonterra has invested close to $20 million in improvements across its two manufacturing sites – contributing significantly to Malaysia’s overall manufacturing infrastructure and capabilities.”

The reopening of the milk powder plant is a strong step forward for Fonterra, which has built a significant local presence in Malaysia over the past 40 years.

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