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Employment News

New Nestle Plant in Batangas to Create Local Jobs

Date Posted: Jul 15, 2010

Nestlé Philippines, the local subsidiary of the largest food company in the world Nestle is investing worth P4.3 billion factory in Tanuanan, Batangas which will boost the local economy of Batangas and would give jobs to its locals.

The factory will be situated on a 27-heactare property which is estimated to be finished by early 2012. The new plant will cater to the domestic market and will only export five percent to six percent of the products to Malaysia. It will produce Nestlé products Coffee-mate non-dairy creamer and Bear Brand powdered milk, two of the company’s bestsellers.

Nestlé chairman and chief executive officer John Miller said the Tanauan factory will directly employ a workforce of 170 people, and generate jobs in sectors providing raw materials and services.

“We believe this investment is a clear demonstration of our full confidence in the Philippines. It is timely as the country restates its commitment to accelerate economic growth. As always, our strategy is guided by our belief in creating shared value for all stakeholders,” he added.

According to Miller the entire three phase expansion will be built in a 27-hectare leased land in the Philippine First Industrial Park in Batangas. Miller refused to give details on the two other phases.

For the first phase, Miller said investments will be P4.3 billion. Construction is expected to begin this month while commercial operations will start March 2012. The capacity is 64,000 tons per year.

With the new plant in place, Miller said the Philippines will become self-sufficient in Coffee-mate.

The Philippines is the second largest consumer of Coffee-mate, next only to the United States.

On the other hand, Bear Brand is currently produced at Nestlé’s Cagayan De Oro Plant. The CDO plant produces 80,000 tons of Bear Brand per year.

Although both Bear Brand and Coffee-mate will be produced in the plant, the bulk will be Coffee-mate. Miller noted that the demand forthe two brands have been growing. In 2010, the domestic market for Bear Brand is expected to grow by 19 percent while the demand for Coffee-mate will increase by eight percent. The export of Bear Brand under the name Everyday is expected to grow by 38 percent.

Aside from the big investment for the new Tanauan Plant, Peter Noszek, Executive Vice President for Finance and Control said that Nestle Philippines spend P1.2 billion to P1.8 billion per year for the expansion of their four other plants in Pulilan, Lipa, Cabuyao and Cagayan de Oro.

Meanwhile, Miller said sales for 2009

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