Fonterra plans to invest about $20 million in a blending and packing plant in Indonesia.
The dairy cooperative packs and blends its consumer brands - Anlene, Anmum and Anchor Boneeto - in New Zealand or through co-packers in Indonesia or in Asia, before distributing to them the Indonesia market.
Chief executive Theo Spierings says demand for dairy in Indonesia is expected to grow by about 50% over the next eight years, and the new plant will ensure it can keep up with the region's growing appetite for dairy.
Fonterra expects the plant to be operational within 18 months. It hasn't yet selected a partner to build the plant, and does not know where it will be located.
Last week Fonterra announced it was investing in two new dairy farms in China's Hebei province.
