Fonterra Co-operative Group has officially opened its new blending and packing plant in Indonesia – its first manufacturing facility in the country.
Chairman John Wilson said the plant is Fonterra’s largest investment in ASEAN in the last decade and will support the growth of Fonterra’s brands – Anmum, Anlene and Anchor Boneeto – in Indonesia.
“Fonterra has been supplying high quality dairy nutrition to Indonesia for more than 30 years and today it is one of our most important global markets. The opening of our new plant is an exciting step forward in our relationship with the country and local dairy industry,” he said.
Fonterra Managing Director Asia, Middle-East, Africa (AsiaMEA) Johan Priem said the investment strategically positions Fonterra to help meet Indonesia’s continuous growing demand for dairy nutrition.
“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.
“Our new plant has the capacity to pack around 16,000 MT of dairy ingredients a year – that’s a pack of Anlene, Anmum and Anchor Boneeto every second, or 87,000 packs every day, which will go a long way in helping Fonterra meet this growing demand for dairy.”
Mr Priem said the plant located in Cikarang, West Java is already having a positive impact on the local community.
“We used local partners for the construction and, when running at full capacity, our new site will employ a team of 160 local employees meaning the investment will continue to flow through the local community.
“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,” he said.
New Zealand Minister of Local Government, Social Housing and State Services Paula Bennett said this new facility reflects the strength of the relationship between New Zealand and Indonesia.
“On behalf of the New Zealand government, I wish to congratulate Fonterra on today’s official opening – it reflects the increasingly interconnected nature of global value chains, and more closely links our economies together.
“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,” Ms Bennett said.
The plant received an A grade rating from regulators during its final stages of testing and commissioning, and has been in commercial operation since June 2015.