Malaysia is considered a major market by the New Zealand group as “consumer insights” here can be used for broader product development.

This investment will boost blending capacity at the Susumas plant – its first in Malaysia, built in 1992 – and reduce dependence on third parties, according to a report in the Nikkei Asian Review (NAR).

The plant can produce and pack an annual 30,000 tonnes of milk powder for brands including Anlene, Anchor, Anmum and Fernleaf, all market leaders in Malaysia.

The report said the operation had grown from distributing finished products imported from New Zealand to blending raw materials and developing new products.

By installing the latest equipment, the company hopes to improve food safety and efficiency and reduce manual handling to meet the higher standards being demanded in the region.

Over 100 products produced in Malaysia are halal-certified, making the country an important hub for exports to other Muslim countries, according to the NAR report.

Dairymas, Fonterra’s other plant in Malaysia, produces some 16,000 tonnes of yogurt and cultured milk a year.