Indofood, Nestle form joint venture

Indofood, Nestle form joint venture

PT Indofood Sukses Makmur, the world's largest instant noodle
producer, announced on Thursday the forming of a joint venture
firm with Switzerland-based food giant Nestle S.A., in a bid to
expand the operation of the two companies locally and abroad.

In a press statement, the publicly listed Indofood said the
joint venture firm was called PT Nestle Indofood Citarasa
Indonesia, with both Indofood and Nestle having an equal share in
the firm.

The firm is expected to engage in manufacturing, selling,
marketing and distributing culinary products in Indonesia and
eventually for export.

Indofood, which was founded by tycoon Sudono Salim -- a close
pall of former president Soeharto -- will license to the new
joint-venture firm its food brands, such as Indofood and Piring
Lombok.

Meanwhile, Nestle will initially give licenses for the firm to
use its Maggi brand.

The joint-venture firm is expected to commence operation by
April 1.

Indofood shares ended lower by Rp 10 to Rp 950 on the Jakarta
Stock Exchange on Thursday. -- JP