Nestlé Malaysia has agreed to offload its Malaysian chilled dairy business and its Petaling Jaya Milo factory to French dairy company Lactalis, and will use the proceeds to expand its Milo factory in Chembong, Malaysia.
According to a statement from Nestlé, Lactalis plans to establish Malaysia as the operations hub of its dairy business in Asia following the transaction, with plans to drive growth through an expanded portfolio of exciting new products.
As a result of the divestment, Nestlé will invest MYR100 million ($24 million) to expand its Chembong Milo production facility, which will establish the site as the world’s largest Milo factory.
Nestlé Malaysia will also move all existing Milo manufacturing operations from its Petaling Jaya factory to consolidate and expand Milo production at the Chembong Factory.
