New Zealand dairy products manufacturer Fonterra has started construction of the IDR357bn ($31.3m) Cikarang Packaging Plant in West Java, Indonesia.

Once completed, the plant will support the growth of the company’s dairy brands including Anlene, Anmum and Anchor Boneeto.

The new plant will run with an annual packing and blending capacity of around 12,000t of advanced and base nutrition milk powder products.

The capacity is said to be equivalent to nearly 87,000 packs of Anlene, Anmum, and Anchor Boneeto per day.

Fonterra Asia Pacific, Middle East & Africa (APMEA) managing director Pascal De Petrini said that the new plant would help the company to cope with the increasing demand for dairy nutrition in Indonesia.

"Demand for dairy in Indonesia is expected to grow by around 5% each year to 2020, and our investment in this facility will help support this growth," Petrini added.

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With the investment in the new plant, Fonterra aims to strengthen its long-term business by expanding consumer brands and on-ground capabilities.

Expected to be operational by March 2015, the plant is set to create around 150 full-time jobs in the Cikarang and wider Bekasi regency communities.

Upon completion, Fonterra’s new plant will also provide local staff with training and development opportunities in advanced food safety, quality and operational standards.

Image: Fonterra, Riverina Fresh in New South Wales. Photo: courtesy of Bidgee.