FrieslandCampina Indonesia
FrieslandCampina’s new dairy plant will produce condensed and pasteurised milk. Credit: Royal FrieslandCampina N.V.

FrieslandCampina has announced plans to build a new dairy plant and distribution centre for Frisian Flag Indonesia in Jakarta for producing condensed and pasteurised milk.

Construction works for the new facility should begin in April.

The plant will have an initial capacity to process more than 500 million kilos with an option to increase the production capacity in the future.

Additionally, the company’s production site in Pasar Rebo will be converted to produce local infant nutrition brands for Asian markets.

The dairy cooperative noted that the two projects will see an investment of nearly €250m ($294m) and should be complete by the first half of 2024.

Royal FrieslandCampina CEO Hein Schumacher said: “This expansion will allow us to provide even more people in Indonesia with our nutritious dairy products in the future.

“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 the dairy sector.”

In a separate development, FrieslandCampina WAMCO completed the acquisition of Nutricima’s dairy business in Nigeria.

The deal will allow FrieslandCampina’s Nigerian subsidiary to meet the increasing demand for locally produced evaporated milk and powder milk.

The production facility, located in Ikorodu, Lagos State, will become part of FrieslandCampina WAMCO’s production network.