AUSTRALIA – Nestlé Australia, a subsidiary of the Swiss multinational Nestlé, is set to inject US$32 million into its Smithtown factory, marking a substantial investment in the site that manufactures Milo beverage.
This move brings the total investment in the facility to around US$80 million over the last decade.
The investment aims to introduce state-of-the-art manufacturing technology to the Milo production line, supporting an increased production capacity.
James Garley, the Factory Manager, emphasized Nestlé’s commitment to local manufacturing, stating, “We’re committed to investing in continuous improvements and upgrades to our Smithtown factory so we can continue to proudly make iconic brands like Milo right here.”
Over the next 12 months, the project is expected to contribute an estimated US$20 million to the local economy and provide support for nearly 200 jobs.
A new building will be constructed to house Milo production, and Mr. Garley assured that the team would ensure the facilities maintain the classic choc-malt crunch that Australians have cherished for generations.
The Nestlé Smithtown factory, with a rich history spanning over a century, currently employs more than 200 people and produces over 200,000 cans of Milo, along with other Nestlé products such as Nesquik, Nescafé mixes, and Malted Milk.
The upgrade is slated for completion by the end of 2024.
Nestle invests in Serbia
In addition to the Australian investment, Nestlé is also making significant strides globally in plant-based food production.
The Swiss food giant has invested US$90.46 million in the construction of a new factory in Surčin, Serbia, dedicated to plant-based foods.
Spanning over 18,440 square meters, the new facility will focus on producing meals from the Garden Gourmet range, catering to dietary needs and environmental responsibility.
Nestlé plans to source ingredients locally, supporting Serbian soy producers and promoting sustainability within the community.
The company has prioritized environmental responsibility in the new factory, utilizing renewable hydroelectric power, eliminating municipal waste generation, and treating all wastewater on-site through a dedicated facility.
Marjana Davidović, director of Nestlé for Serbia, Montenegro, and North Macedonia, emphasized Nestlé’s commitment to sustainability, stating, “By expanding our plant-based range one step at a time, we are working to shape a more sustainable future for everyone.”
Recently, the Swiss multinational reported an impressive 7.2 percent organic growth for the full year 2023, despite achieving a 1.5 percent decrease in total reported sales, amounting to US$106.2 billion.
The company’s organic growth was driven by a 7.5 percent pricing increase reflecting cost inflation over the last two years.
Looking ahead, Nestlé projects organic sales growth around 4 percent in 2024 and a moderate increase in the underlying trading operating profit margin.
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