Nestle Philippines Inc.’s Cagayan de Oro Factory which manufactures NESCAFÉ and is the Nestlé Group’s ASEAN (Association of Southeast Asian Nations) supply center for filled milk powder, is here to stay after the company refuted a report that said its parent firm, the Swiss-based Nestle, is planning to relocate its factories in Malaysia and  in the Philippines to Indonesia to be closer to its raw materials.

“There are no plans to move any of its factories in the Philippines to Indonesia,” Nestle Philippines said in a statement on Monday.

Aside from Cagayan de Oro, Nestle Philippines has three other manufacturing facilities in the country:  Cabuyao Factory which manufactures milk, nutrition, beverages, and food and is the Nestlé Group’s ASEAN supply center for infant nutrition products; Lipa Factory which manufactures MILO and is the Nestlé Group’s ASEAN supply center for breakfast cereals, and the recently commissioned Pulilan Factory, which manufactures Nestle ice cream and chilled products.

“In fact, Nestle continues to invest heavily in its manufacturing facilities in the Philippines, to upgrade machinery and expand capacities to meet local and foreign demand for its products,” Nestle Philippine said.

Nestle’s Indonesian unit was quoted in by a daily business newspaper Kotan, as saying that the world’s biggest food group, is planning to pull out its factories in Malaysia and the Philippines, and bring them to Indonesia.

Brata T. Hardjosubroto, spokesman for Nestle Indonesia unit, told Kontan that the firm would announce details of the relocation in November.

His claim was echoed by Indonesian Deputy Trade Minister Mahendra Siregar who said Nestle’s factory relocation was based on its need to be close to raw material sources.

Nestle is in negotiations with Indonesian cocoa powder producer PT Bumitangerang Mesindotama to supply cocoa for the relocated factories, said Bumitangerang Mesindotama’s President Director Piter Jasman. with a report from Reuters

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