Nestle invests Rs.700 m on factory expansion

Nestle Lanka has invested around Rs. 700 million in their Kurunegala factory this year.

Managing Director of Nestle Lanka, Stuart Young said, despite a challenging year as a result of high world market prices of major commodities and local economic conditions, we are continuing to invest in Sri Lanka.

Nestle Lanka has a 100-year heritage in the country, having begun operations in 1906. Focused on nutrition of the highest quality, safety and customer satisfaction, the Company has continued to advance its research and manufacturing operations locally.

On average, Nestle Lanka spends an annual sum of Rs. 200 million on upgrading and innovating its state-of-the-art food and beverage processing plant at Kurunegala.

The investment this year is to increase capacity in the three product areas of Nestomalt, Maggi Noodles and Milkmaid Sweetened Condensed Milk. Manufacturing capabilities have been improved because of the potential demand the Company sees in the local market based on its longstanding commitment to Sri Lanka.

"We are encouraged by aspects of the Government's proposed budget for 2008, principally its plans for infrastructure and rural development with particular emphasis on dairy," Young said. In fact, Nestle Lanka has been involved in uplifting the dairy sector since the 1980's and we have an islandwide procurement network that collects some 100,000 litres of fresh milk daily from about 15,000 farmers.

As the largest private sector buyer of fresh milk, we continue to support dairy farmers by offering them interest free loans to purchase cattle as well as technical assistance in milk collection, animal husbandry and hygiene practices.

In addition, we organise livestock health programmes in conjunction with the government veterinary departments and provide necessary equipment", he said.