Work begins on Fonterra's Indonesian blending and packing plant

Fonterra has begun construction on a new IDR357 billion blending and packing plant in Indonesia. Located in West Java, the plant is the company’s first manufacturing facility in the country and its largest investment in a new manufacturing facility in the Asia-Pacific region in the last 10 years.

The plant will support the growth of Fonterra’s Anlene, Anmum and Anchor Boneeto brands in the region, which have been buoyed by the growing demand for dairy nutrition in Indonesia.

“Demand for dairy in Indonesia is expected to grow by around 5 per cent each year to 2020, and our investment in this facility will help support this growth,” said Pascal De Petrini, Managing Director of Fonterra Asia-Pacific, Middle East & Africa (APMEA).

“This new blending and packing facility is the next step for our business in Indonesia, where we already have a strong and established presence. The investment will support the local expansion of Fonterra’s consumer brands, and increase our on-ground capabilities which are critical to the long-term growth of our business.”

Expected to be operational by March 2015, the plant will have the capacity to pack and blend 12,000 tonnes of advanced and base nutrition milk powder products annually, which is the equivalent of approximately 87,000 packs of Anlene, Anmum and Anchor Boneeto every day.

According to Paul Richards, President Director, Fonterra Brands Indonesia, the plant will bring Fonterra’s world-class dairy manufacturing in design standards, knowledge, expertise and technology from New Zealand to Indonesia.

“It will also provide local staff with training and development opportunities in advanced food safety, quality and operational standards,” Richards said.

“We are investing in building the right infrastructure and developing local capabilities to produce our trusted portfolio of brands and meet the ever-growing demand for dairy in Indonesia.”

Currently, Indonesians consume 11 litres of milk per capita, well below the average consumption of neighbouring nations like Singapore where consumption is 51 litres of milk per capita.