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FrieslandCampina Invests in Indonesian Market

FrieslandCampina Invests in Indonesian Market


THE NETHERLANDS
Friday, October 9th, 2020

Just last week, the council of Zuivelcoöperatie FrieslandCampina U.A. appointed Frans Van den Hurk to the company’s Board of Directors. It seems even further growth is in the works as FrieslandCampina has also announced a strategic investment of over $295 million (€250 million) in Indonesia with plans to open a new dairy plant and distribution center.

Hein Schumacher, Chief Executive Officer, Royal FrieslandCampina N.V.“This expansion will allow us to provide even more people in Indonesia with our nutritious dairy products in the future,” Hein Schumacher, CEO of Royal FrieslandCampina N.V., said about this significant investment. “In nearly a hundred years Frisian Flag®, or ‘Susu Bendera,’ as the Indonesians call it, has grown into a brand known to almost everyone in Indonesia, and it is the only dairy brand in the Top 10 FMCG brands. The construction of a new production site will allow us to continue to grow and contribute to the development of the Indonesian economy and dairy sector.”

According to a press release, the new facility is expected to serve Frisian Flag Indonesia in the Jakarta area. As part of the plan, the current production site at Pasar Rebo will be converted into the production center for local infant nutrition brands for Asia. The investment is crucial to ensuring continued growth in Indonesia in the future, which is one of FrieslandCampina’s largest and fastest-growing markets.

The investment is crucial to ensuring continued growth in Indonesia in the future, which is one of FrieslandCampina’s largest and fastest-growing markets

The construction of the new dairy plant for the production of condensed and pasteurized milk is scheduled to begin in April 2021. Total production capacity will exceed half a billion kilos of finished product, with the possibility to expand to one billion kilos. The conversion of the Pasar Rebo production site into the central production center for local infant nutrition brands for Asia is set to take place concurrently. Both projects should be completed by the first half of 2024.

Frisian Flag Indonesia is one of the largest dairy companies in Indonesia. In total, Frisian Flag Indonesia employs around 3,000 people, with some 2,000 vendors on the road each day through distributors, working to supply all 350,000 outlets across Indonesia with dairy products.

Will this strategic expansion lead to more international growth for the FrieslandCampina brand? Follow along with Deli Market News as we report.

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