Kellogg Company Builds New Malaysian Snacks Plant as Part of Project K Efficiency and Effectiveness Initiative
US food manufacturer Kellogg Co or Kellogg’s, which is building a US$130 million (RM425.1 million) halal facility in Malaysia, aims to expand its supply chain capacity in the Asia-Pacific region.
The manufacturing facility is being built in Bandar Enstek, Negri Sembilan and would create some 300 new jobs when its first phase is completed by the middle of next year.
Prime Minister Datuk Seri Mohd Najib Razak officiated the groundbreaking for the new plant, which will produce halal certified Pringles crisps. It is only the second such facility in the region.
The company intends to manufacture more halal snack food in the Asia-Pacific.
Kellogg Co’s Asia-Pacific president Amit Banati said the Negri Sembilan factory will complement Kellogg’s other halal facility in Thailand.
“The creation of the new snacks manufacturing facility here represents a key milestone in the company’s ambition to become a global snacks player and will enable Kellogg company to better deliver delicious and high-quality snack food to consumers in the Asia-Pacific markets,” he said.
Banati added that this is a region in which the company has set ambitious growth targets and creating a footprint in the snacks business.
“This is a big step for us in ensuring that we stay relevant and expanding our supply chain capabilities. Building a new facility highlights the focus and commitment that the Asia-Pacific region is receiving from Kellogg company,” he reiterated.
Kellogg’s, the world’s largest manufacturer of ready-toeat breakfast cereals and second largest producer of savoury snacks, cookies and crackers, employs more than 2,200 employees across South- East Asia, Japan, Singapore, Australia, New Zealand, Thailand, India, South Africa, China and Malaysia.
Currently, Kellogg Malaysia Sdn Bhd employs 35 people at its head office in Kuala Lumpur, whereas the company has one co-manufacturer in Malaysia for “Pringles”.
Banati pointed out that Kellogg’s investment in Malaysia will serve as a catalyst and will help increase net tax collection of around RM200 million over the next 10 years, while providing high export volume.
This strategic investment is in line with two of Kellogg Company’s four business strategies – becoming a global snacks player and building our emerging markets footprint.
“We have a compelling business need to better align our assets with marketplace trends and customer requirements,” said Bryant. “To that end, we are taking action to ensure our manufacturing network is operating the right number of plants and production lines – in the right locations – to better meet current and future production needs and the evolving needs of our customers.”