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Nestlé Malaysia Starts New biomass Boiler For Its Industrial Complex In Chembong

KUALA LUMPUR: Nestlé Malaysia Bhd is further reducing its carbon footprint with the operation of its new biomass boiler at its Chembong factory in Rembau, Negeri Sembilan, reflecting the company’s strong environmental, social and governance (ESG) commitment.

Nestlé Malaysia’s factory in Chembong is making further strides towards a more sustainable future by adopting a biomass boiler and using renewable electricity.

The biomass boiler started operations at the Chembong factory at the end of 2023 and uses oil palm empty fruit bunches (EFB) and palm kernel shells as renewable energy sources.

It replaces fossil fuels to generate steam 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.

Costing RM18 million to install, the biomass boiler was developed and installed by technology partner Enco Systems Sdn Bhd, a total boiler solutions provider.

Officiating the biomass boiler at the factory, Negeri Sembilan chief minister Datuk Seri Utama Aminuddin Harun said driving meaningful change and sustainable development requires a collective effort, with the public and private sectors playing a role.

“As such, I laud forward-thinking companies such as Nestlé Malaysia 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,” he said.

Established in 1993 and expanded in 2019 to meet growing local and regional demand, the Chembong factory is Nestlé Malaysia’s largest Milo plant in the world.

Over the past three decades, the factory has given rise to job creation, economic opportunities and community

With a fully 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.

Nestlé Malaysia chief executive officer Juan Aranols said the company celebrates a 30-year journey of its 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 and also allows us to impact the Chembong community and honour our environmental commitment positively.

“It also serves as a testament to our dedication to producing high-quality products made in Malaysia by Malaysians,” he said.

Aranols said that Milo is taking further strides towards a more sustainable future by adopting a biomass boiler and using renewable electricity.

“Milo’s colour is green, and we are making Milo even greener for the planet and all Malaysians, with the adoption of cleaner technologies that complement further the move to renewable electricity implemented in 2022,” Aranols said

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