Yili Group developing ice cream production facility in Indonesia

By Jim Cornall contact

- Last updated on GMT

The project is expected to create more than 5,000 new jobs for local communities, directly and indirectly. Pic: Yili
The project is expected to create more than 5,000 new jobs for local communities, directly and indirectly. Pic: Yili

Related tags: Yili, Indonesia, Ice cream

Chinese dairy giant Yili Group has officially launched the first phase of the Yili Indonesia Dairy Production Base. Upon completion of its second phase, it will become the country's largest ice cream factory with a daily production capacity of 4m ice cream products.

Yili said the facility was established due to the popularity of Joyday ice cream, a brand that has rapidly expanded to 260 local cities in 26 provinces, covering nearly all of Indonesia, since its entry into the market in 2018.

"Local consumers' clear preference for and trust in our products has reinforced Yili's confidence about our long-term investment and development in Indonesia,"​ said Pan Gang, chairman and president of Yili Group, in a virtual speech delivered at the ceremony.

"Yili is always dedicated to following the highest standards to drive quality, sustainable development over the long term and establishing localized operations that benefit the communities where we operate. This ensures that we can better serve local consumers and make deep contributions to socio-economic development throughout the region."

The Indonesia-based hub aims to speed up Joyday product manufacturing, R&D and marketing efforts, with more new products to come.

At Yili's first self-built plant in Southeast Asia, the production base integrates advanced digital technologies throughout its entire production chain. Robotics solutions are introduced to provide automated packing, palletizing, and warehousing.

To date, the factory has passed the ISO22000, HALAL, and BPOM certifications and been rated A grade by LPPOM MUI, the largest food and drug certification agency in Indonesia.

Yili Indonesia Dairy has built a wastewater treatment system with a daily treatment capacity of 2,800 tons. Reclaimed water is then used for the irrigation of plants in the factory.

The site will be open to the public whenever the factory is in full operation for consumers to watch the whole production process.

Today, Yili Indonesia Dairy has 383 employees, with local employees accounting for 95% of the workforce. The project is expected to create more than 5,000 new jobs for local communities, directly and indirectly.

Yili Indonesia Dairy said it is also pursuing further opportunities for cooperation with local partners. The company has established cooperative relationships with more than 90 suppliers in Indonesia. Moving forward, its partnerships will expand to local distributors with 200,000 sales outlets. Yili said it is also dedicated to promoting Indonesian flavors to global consumers through its worldwide marketing channels.

Together with the company's Thailand-based ice cream production base, Yili's "Southeast Asian dual centers" and Southeast Asia Innovation Center have taken shape, and are expected to accelerate product manufacturing and R&D in the region.

Yili Southeast Asia Innovation Center will also work together with Yili's innovation centers across China, Japan, Europe and Oceania, with the aim of rolling out more localized innovation solutions.

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