April 10, 2012
 

Nestlé is strengthening the dairy industry in Asia with the opening of a new CHF 5.8 million (US$6.3 million) UHT milk factory in Sri Lanka, as part of a CHF 77 million (US$83.8) total investment in Sri Lanka over the next few years.

It will produce ready-to-drink brands such as Milo and Nespray at Nestlé's existing manufacturing site in the Sri Lankan province of Kurunegala.

"The new manufacturing capabilities…mean we can produce new products for our Sri Lankan consumers, said Alois Hofbauer, Managing Director for Nestlé Lanka. "Our dairy based beverages are Sri Lankan household favourites," he added.

Nestlé entered the Sri Lankan dairy sector since the 1980s and has three UHT milk factories today. Nestlé is Sri Lanka's single largest private sector collector of fresh milk, procuring fresh milk from over 15,000 local dairy farmers every day.

The new UHT milk factory is part of Nestlé's dairy investment programme in Asia.

In January, the company constructed a new dairy farming institute in Shuangcheng in Heilongjiang province, China. It aims to help dairy farm owners and workers from Shuangcheng and other Chinese regions improve their farm management skills and educate them about the latest agricultural technology.

Nestlé India has developed milk production in the region since it built its first factory in Moga in 1961 and now has eight factories in the country. Over the years, Nestlé has invested to develop the area around that first factory, setting up milk collection points and training farmers to improve productivity and quality.