Fonterra opens $37m blending and packing plant in Indonesia
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New Zealand dairy giant Fonterra has opened a new $37m blending and packing plant in Indonesia.
Said to be Fonterra’s first manufacturing facility in the country, the plant uses the company’s manufacturing design standards and technology.
The plant is capable of packing close to 16,000mt of dairy ingredients annually and it will allow Fonterra to meet growing demand for nutrition in the country.
The company says that the capacity is equivalent to nearly 87,000 packs of Anlene, Anmum, and Anchor Boneeto per day.
When fully operational, the plant will employ 160 local people.
The investment, which is Fonterra’s largest investment in ASEAN in the past 10 years, will boost the growth of Fonterra’s brands including Anmum, Anlene and Anchor Boneeto.
Construction on the plant at Cikarang in West Java commenced in March 2014.
Fonterra Asia, Middle-East, Africa managing director Johan Priem said: “The country’s large and increasingly affluent population is looking for highly nutritious foods for all ages.
“This is fuelling dairy demand growth which is expected to increase by five per cent every year to 2020.
“The site also utilises Cikarang’s dry port, allowing us to ensure all of our operations are located in one area. This will help us drive logistical efficiencies.”
New Zealand Minister of Local Government, Social Housing and State Services Paula Bennett said that the new facility reflects the strength of the relationship between New Zealand and Indonesia.
“Our governments have set a target to grow two-way trade to NZD4 billion by 2024 and dairy continues to be a critical part of this relationship,” added Bennett.
Questions & Answers
Q.What is the primary purpose of Fonterra's new plant in Indonesia?
What is the primary purpose of Fonterra's new plant in Indonesia?
The plant is designed for blending and packing dairy ingredients. Its main goal is to help Fonterra meet the increasing demand for nutrition within Indonesia, particularly for its key brands like Anlene and Anmum.
Q.What is the annual production capacity of the new facility?
What is the annual production capacity of the new facility?
The new blending and packing plant is capable of handling close to 16,000 metric tonnes of dairy ingredients annually. This capacity is equivalent to nearly 87,000 packs of products such as Anlene, Anmum, and Anchor Boneeto per day.
Q.How many local people will be employed at the plant once it is fully operational?
How many local people will be employed at the plant once it is fully operational?
Once the plant reaches full operational capacity, it is expected to employ 160 local people. This supports the local workforce in Cikarang, West Java, where the facility is located.
Q.What is driving the increased dairy demand in Indonesia?
What is driving the increased dairy demand in Indonesia?
Johan Priem stated that Indonesia's large and increasingly affluent population is seeking highly nutritious foods for all ages. This demographic trend is expected to fuel a 5% annual increase in dairy demand until 2020.
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