Nestlé Philippines recently inaugurated a new malt production plant at its Lipa factory with a total investment of P2 billion for the 5,400 square-meter facility which was built and set up over a period of almost two years.
The plant, which produces malt extract, a key ingredient in the manufacture of MILO products, is only the fourth such plant in the Nestlé world, the three others being located in Singapore, Nigeria and Australia.
The inauguration was led by Nestlé Philippines Chairman and CEO Jacques Reber, Technical Director Adnan Pawanteh, Lifestyle and Active Beverages Business Executive Officer Joey Uy, MILO Business Unit Manager Willy de Ocampo, Lipa Factory Manager Volker Hoeller, and Malt Project End-to-End Manager Sebastien Saby.
The state-of-the-art MILO malt plant uses natural lighting and ventilation, and is designed for low water consumption and minimal water loss. Solar panels heat water for use in production, saving on energy costs and the use of traditional energy sources. The plant’s cooling towers use available rainwater and treated processing water serves 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 value, will be used for animal feeds. The new facility is highly automated and employs 23 operators and technicians.
Mr. Reber warmly congratulated all those behind the successful completion and the start-up of the malt plant, acknowledging the key role each one performed. “The launching of our malt production plant is a happy start to our one hundred and seventh year in the Philippines. This latest investment is aligned with our long-term commitment to contribute to the growth of the economy and participate in the development of the country, living the Nestlé purpose of enhancing quality of life and contributing to a healthier future,” said Mr. Reber.
The plant is using barley and cassava as major raw materials for the production of the malt extract. While cassava is initially being imported from Thailand, Nestlé is now actively looking at using cassava sourced from farmers in the 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 local cassava farmers, and hopes that more farmers will take up cassava planting to supply Nestlé’s requirements in the long term.
The malt plant’s capacity is expected 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.