Nestle Malaysia : Nestlé Malaysia Accelerates its Sustainability Journey Through a New Biomass Boiler for its Industrial Complex in Chembong

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The site is host to the largest MILO Factory in the world

CHEMBONG, March 8, 2024 - Reflecting its strong ESG commitment, Nestlé Malaysia has taken a pivotal step towards further reducing its carbon footprint with the start of operation of a biomass boiler servicing the needs of its Chembong Factory in Rembau, Negeri Sembilan.

[Centre left] YAB Dato' Seri Utama Haji Aminuddin Bin Harun, Menteri Besar Negeri Sembilan Darul Khusus and [centre right] Juan Aranols, CEO, Nestlé (Malaysia) Berhad with distinguished guests officiating the launch of the new Biomass Boiler at the Nestlé Chembong Factory in Rembau, Negeri Sembilan.

Established in 1993 and expanded in 2019 to meet growing local and regional demand, the Chembong Factory is Nestlé's largest MILO plant in the world. Over the past three decades, the factory has given rise to job creation, economic opportunities and community engagement. With a 100% Malaysian manufacturing workforce it, is also an important production centre for other key brands such as KIT KAT, NESTLÉ ICE CREAM and KOKO KRUNCH. All products are Halal-certified and made in Malaysia for local and global consumption, exporting to more than 20 countries worldwide.

The biomass boiler has started operations at the end of 2023 at the Chembong Factory and utilises oil palm Empty Fruit Bunches (EFB) and palm kernel shell as renewable energy sources. It replaces fossil fuels to generate steam used for heating processes in its manufacturing operations. This approach is part of a natural carbon cycle and does not contribute to long-term carbon emissions, making it carbon neutral. This innovative solution significantly reduces net CO2 emissions compared to fossil fuels and it also aids in the reduction of other greenhouse gases. It is projected to significantly decrease the factory's greenhouse gas emissions by 14,000 tonnes of CO2e annually, while simultaneously minimising pollution, reducing landfill waste, and preserving valuable natural resources.

The biomass boiler was developed and installed by technology partner ENCO Systems Sdn Bhd, a total boiler solutions provider, entailing an investment of RM18 million.

Officiating the biomass boiler at the factory, Menteri Besar Negeri Sembilan, YAB Dato' Seri Utama Haji Aminuddin bin Harun, said, "Driving meaningful change and sustainable development requires a collective effort, with both the public and private sectors playing a role. As such, I laud forward-thinking companies such as Nestlé that are going the extra mile to champion sustainability in their business by taking proactive measures to minimise their carbon footprint. This aligns with the State Government's shared values of environmental stewardship and responsible economic growth."

Mr. Juan Aranols, CEO of Nestlé Malaysia, said, "We are honoured to celebrate the incredible 30-year journey of our Chembong Factory with the official launch of this important sustainability investment. This initiative enables us to make significant progress towards our environmental goals, namely the reduction of our carbon footprint as a responsible manufacturer but also allows us to positively impact the Chembong community and honour our commitment to the environment. It also serves as a testament to our dedication in producing high-quality products made in Malaysia, by Malaysians. With the adoption of a biomass boiler and the use of renewable electricity, MILO is taking further strides towards a more sustainable future."

"MILO's colour is green, and we are making MILO even "greener" for the planet and for all Malaysians, with the adoption of cleaner technologies that complement further the move to renewable electricity implemented in 2022," concluded Aranols.

About Nestlé Malaysia

Nestlé is the world's largest food and beverage manufacturer. Headquartered in Switzerland, Nestlé is present in more than 180 countries around the world, and our 270,000 employees are committed to Nestlé's purpose of unlocking the power of food to enhance quality of life for everyone, today and for generations to come. Our performance is driven by our Nutrition, Health and Wellness strategy. Nourishing Malaysians since 1912, Nestlé has earned the trust of our consumers through our quality brands and products. We are committed to improving the lives of the communities in which we operate, whilst maintaining our Halal excellence and integrity.

This is in line with our promise of delivering GOOD FOOD, GOOD LIFE to all. To learn more about how we have been nourishing Malaysians for over a century, do visit www.nestle.com.my or our Facebook page at http://www.facebook.com/Nestle.Malaysia.

For more information, please contact:

Shaheen Zaffar
Nestlé (Malaysia) Berhad
Tel: [phone]
E-mail: [email protected]

Sonyia Ambi or Yasmin Kadir
acorn communications
Tel: [phone]
E-mail: [email protected]