Nestle Malaysia budgets up to RM120m for capex
Written by Kamarul Azhar
Tuesday, 08 March 2011 11:52
PETALING JAYA: Nestle Malaysia Bhd has budgeted RM100 million to RM120 million to expand its capacity this year.
“Majority of the sum is to be invested in increasing the capacity and innovation, while the smaller part will be on maintaining and upgrading the factory,” its managing director Peter Vogt told The Edge Financial Daily.
He said the increase in capacity at the company’s factory allows the group to expand its export market, namely Indonesia and the Philippines, as well as the domestic market.
The budget for capacity expansion is in line with the group’s priority on having organic growth, instead of growing by mergers and acquisitions.
Acknowledging that the food and beverages industry has gone through some consolidation lately, however, he said there were not that many opportunities for acquisition.
However, he added that Nestle is always open for such acquisitions, which suit well into the overall strategy of the group.
Vogt: Increase in capacity at the company’s factory allows the group to expand its export market, namely Indonesia and the Philippines, as well as the domestic market.
“Every year we have allocated some money for capital expenditure. Some of it would be for upgrading the factory or increasing the capacity, or maybe for a totally new product,” said Vogt.
He added that the investment planned for this year would be for a wide range of activities, such as factory upgrading and maintenance, and increasing the capacity by adding more operation lines in various areas.
In October last year, the company purchased a piece of land adjacent to the company’s plant in Shah Alam from British American Tobacco (M) Bhd (BAT) for RM36 million cash. The land, according to Vogt is slated for future expansion of the capacity of the plant.
“The land is adjacent to our facility so now we have more space to expand our capacity,” he noted.
This article appeared in The Edge Financial Daily, March 8, 2011.
Written by Kamarul Azhar
Tuesday, 08 March 2011 11:52
PETALING JAYA: Nestle Malaysia Bhd has budgeted RM100 million to RM120 million to expand its capacity this year.
“Majority of the sum is to be invested in increasing the capacity and innovation, while the smaller part will be on maintaining and upgrading the factory,” its managing director Peter Vogt told The Edge Financial Daily.
He said the increase in capacity at the company’s factory allows the group to expand its export market, namely Indonesia and the Philippines, as well as the domestic market.
The budget for capacity expansion is in line with the group’s priority on having organic growth, instead of growing by mergers and acquisitions.
Acknowledging that the food and beverages industry has gone through some consolidation lately, however, he said there were not that many opportunities for acquisition.
However, he added that Nestle is always open for such acquisitions, which suit well into the overall strategy of the group.
Vogt: Increase in capacity at the company’s factory allows the group to expand its export market, namely Indonesia and the Philippines, as well as the domestic market.
“Every year we have allocated some money for capital expenditure. Some of it would be for upgrading the factory or increasing the capacity, or maybe for a totally new product,” said Vogt.
He added that the investment planned for this year would be for a wide range of activities, such as factory upgrading and maintenance, and increasing the capacity by adding more operation lines in various areas.
In October last year, the company purchased a piece of land adjacent to the company’s plant in Shah Alam from British American Tobacco (M) Bhd (BAT) for RM36 million cash. The land, according to Vogt is slated for future expansion of the capacity of the plant.
“The land is adjacent to our facility so now we have more space to expand our capacity,” he noted.
This article appeared in The Edge Financial Daily, March 8, 2011.
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