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Nestlé Invests PhP 2 Billion in MILO Malt Plant




Chairman and CEO Jacques Reber recently announced the ongoing construction of a MILO malt plant at Lipa Factory in Batangas with a total investment of PhP 2 billion.

Jacques said the impetus for the investment is the Company’s strong confidence in the continued growth of the country’s economy, consistent with its long-term mission of nurturing generations of Filipino families and contributing to nation-building.

“The Philippines is a key market for us at Nestlé. For over a century, we have continually affirmed our confidence in and commitment to the Philippines through our investments and expansion. Our PhP2 billion investment in the new MILO malt plant is another concrete demonstration of our commitment to the Philippines,” Jacques said.

The announcement of the new MILO malt plant investment coincided with the celebration of the global Nestlé Group’s 150th anniversary this year.

Construction of the MILO malt plant began in December 2015 and is expected to be completed in October 2017.

Malt Requirements for MILO
The plant will provide all the country’s Protomalt requirements for MILO, the country’s leading and well loved choco-malt milk drink that Filipino consumers have grown up with. Protomalt, a Nestlé proprietary malt extract and a key nutritional ingredient of MILO, provides the product its characteristic taste and serves as a source of energy that helps fuel both body and mind activities.

At present, Protomalt for MILO manufactured in the Philippines is sourced from Singapore, where the Nestlé Group’s biggest malt plant is located. Other Nestlé malt plants are located in Nigeria and Australia. In order to ensure quality, all Protomalt used by Nestlé is produced by the Company itself in the three plants.

The new plant will use barley and cassava as major raw materials for the production of the malt extract. While cassava will initially be imported from Thailand, Nestlé is now actively looking at using cassava sourced from farmers in Philippines to create shared value, a move that is expected to help improve livelihood, further boost agriculture, and uplift the cassava industry in the country. The Company has started to qualify cassava farmers in Mindanao, and hopes that more farmers will take up cassava planting to supply Nestlé’s requirements in the long term.

Nestlé expects the malt plant’s capacity to increase considerably in three to four years, with potential for exporting some of its output to other Nestlé companies abroad.

The plant will enable Nestlé Philippines to develop new types of malt extract to address the evolving needs of Filipino consumers.

The state-of-the-art MILO malt plant will use natural lighting and ventilation, and is designed for low water consumption and minimal water loss. Solar panels will heat water for use in production, saving on energy costs and the use of traditional energy sources. The plant’s cooling towers will use available rainwater and treated processing water will serve to irrigate the nearby Nestlé Lipa Integrated Coffee Center, which will also use residue from production as fertilizer. Spent grains from barley residuals, which have nutritional values, will be used for animal feeds. The new facility is highly automated and will employ 23 new operators and technicians.

The 5,400-square meter malt facility, which will house a specially designed gallery allowing visitors to observe and understand how malt is produced for MILO, will be the third plant at the Lipa Factory complex, which has a total land area of 29 hectares. The Factory’s two other plants manufacture MILO and Breakfast Cereals, respectively.