MANILA, Philippines — Food and beverage giant Nestlé Philippines has spent P2.8 billion for its new ready-to-drink (RTD) plant in Tanauan, Batangas, in line with enhancing the company’s capabilities as well as boosting local production.
The company inaugurated yesterday the 14,688-square meter facility, which will initially manufacture Nestlé Chuckie, the leading chocolate milk ultra-high temperature (UHT) brand in the country.
By mid-year, the plant will also start producing Nestlé All Purpose Cream, the company said.
Nestlé Philippines chairman and CEO Kais Marzouki said the company’s capital expenditures in the five years from 2014 to 2018 have totaled P13.7 billion, averaging P2.7 billion per year.
Marzouki said bulk of the investments have been spent to upgrade manufacturing capacity at Nestlé’s four factories in Cabuyao, Cagayan de Oro, Lipa and Tanauan.
He added that investments have also been made to enhance the company’s distribution capabilities.
At present, the company employs 3,700 people.
“Our investments demonstrate our faith in the Philippines over the long term and express our commitment to participate in economic growth and nation-building as we have done for more than a hundred years,” Marzouki said.
“These investments, particularly in our manufacturing capabilities, meet the ever growing demand for our products in the market, as we pursue the Nestlé purpose of enhancing quality of life and contributing to a healthier future for Filipinos,” he added.
Marzouki said a similar amount of investment will be spent in the next four to five years.
The company official stressed Nestlé Philippines’ push for local manufacturing over product importation.
“When we manufacture in the country, we bring in technology, generate employment, pay taxes, contribute to the further development of the manufacturing sector, and create a positive ripple effect in the economy,” he added.
Marzouki said at present, 94 percent of Nestlé products sold in the Philippines are manufactured locally.
Nestlé Philippines said it would pay additional taxes for its Tanauan factory starting next year, which would contribute to the economy of the province.
The RTD plant, which generated 2,000 jobs during its construction, will have a headcount of some 80 employees. The entire Tanauan factory complex, with its advanced automation, will have 346 employees, plus indirect employment from materials and services suppliers.
The plant is also equipped with state of the art technology including wet process and UHT equipment, ensuring superior product quality.
The company said all processing is highly automated, including the packing and palletization line.
The project also entailed an additional investment in and upgrade of the existing waste water treatment plant at the Tanauan factory with the installation of a new membrane bioreactor, resulting in a higher quality of treated water.
“With our mission of nourishing generations of Filipino families and helping build a strong and prosperous nation, we have every confidence, as we inaugurate our new RTD plant, that Nestlé will continue to invest in the country and in its future,” Marzouki said.
The company official said the addition of the new RTD facility will help the company achieve double-digit sales growth this year.