New Nescafe Plant To Increase Regional Production

New Nescafe Plant To Increase Regional Production

31 July 2009

Nestlé Malaysia has invested RM110 million to upgrade its existing manufacturing facilities in Shah Alam to accommodate Nestlé’s new regional soluble coffee plant that will almost double its current capacity. The new NESCAFE factory which was officially launched today, will not only increase capacity but boasts of new technologies that will allow the company to enhance the current range of product offerings under the household name.

Nestlé will now be able to produce 80% more coffee at its newly expanded facility in Shah Alam, and has the option of producing high end products in the NESCAFÉ range. This translates into an equivalent of 6.5 billion cups of NESCAFÉ a year with approximately 50% of the production exported to the region and other parts of the world and the remaining 50% for local consumption. The new plant, which is highly automated, will require a skilled workforce to run it. The current existing coffee plant in Shah Alam is already a high performing production facility and has consistently ranked amongst Nestlé’s top five as a low cost conversion plant.

Speaking at the inauguration of the plant, Mr. José Lopez, Executive Vice President, Nestlé S.A. responsible for global operations and GLOBE (Nestlé’s Global Business Excellence Programme) said, ”Considering the country’s political stability, good tax incentives as well as its skilled workforce, we chose Malaysia to be the site of another regional manufacturing centre for NESCAFÉ.”

“In addition to expanding our manufacturing capabilities, this new coffee plant will feature Nestlé’s standard of environment-friendly manufacturing practices such as incineration of spent coffee grounds, reduction of air emission, recycling programmes for packaging materials and also recycling of process water to reduce water discharge,” added Mr. Lopez.

The new coffee plant in Shah Alam will eventually join the list of more than 20 NESCAFÉ factories around the world that are currently using spent coffee grounds as renewable fuel which reduces the needs for landfills.

The original NESCAFÉ factory in Shah Alam started commercial production in January 1987 and it is Nestlé’s only soluble coffee manufacturing facility in the country. In addition to Malaysia, Nestlé also has coffee plants in Thailand, Indonesia, the Philippines and Vietnam in the region.

NESCAFÉ introduced instant soluble coffee to the world in 1938 and in Malaysia in 1950s. The most popular range of NESCAFÉ is the CLASSIC which is produced at the Shah Alam factory. NESCAFÉ currently leads the soluble coffee category in Malaysia with strong market shares.

With a history of more than 70 successful years, NESCAFÉ constantly innovates and renovates to offer consumers new and enjoyable coffee experiences through superior product quality and new product innovations. Ubiquitous throughout Malaysia, coffee is often referred to as NESCAFÉ, by Malaysians of all walks of life.