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SWISS-BASED NESTLÉ, the world’s biggest food group, is planning to relocate factories in Malaysia and the Philippines to Indonesia to be closer to raw materials, officials told a local newspaper on Monday.

Brata T. Hardjosubroto, spokesperson for Nestlé’s Indonesia unit, told daily business newspaper Kontan that the firm would announce details of the relocation in November.

But according to officials of Nestlé Philippines Inc. the company will stay on in the country and has no plans to move any of its factories to Indonesia, contradicting the report that appeared in the Indonesian newspaper.

In an official statement sent to the Philippine media yesterday, Nestlé further clarified that the company, in fact, would continue to invest heavily in its manufacturing facilities in the Philippines to upgrade machinery and expand capacities to meet local and foreign demand for its products.

The company currently has four manufacturing facilities in the country. Its Cagayan de Oro factory, where the company manufactures Nescafé, also serves as the Nestlé Group’s Asean Supply Center for filled milk powder. - PDI