Nestle shifts to electric trucks to move ingredients


CHEMBONG: Nestle (M) Bhd has become the first manufacturer to be given approval by authorities to use electric trucks that will be used to transport Milo ingredients from its largest industrial complex in Chembong, Negri Sembilan to its facility in Jurong, Singapore.

Nestle, the world’s largest food and beverage manufacturer, will use completely built up Volvo trucks to transport the ingredients 280km to Singapore, a move which will see a potential reduction of 1,000 tonnes of carbon emissions each year.

Nestle chief executive officer Juan Aranols said Milo trucks make an average of 1,750 trips annually to the republic from Chembong, home of the largest Milo factory in the world and the latest initiative is a testament to the company’s ongoing progress towards achieving net-zero emissions by 2050.

“At Nestle, sustainability is integral to every aspect of our business across the entire value chain from sourcing raw materials to the production process and how we transport our products, how we commercialise them and how we deal with any post-consumer waste.

“Now, this mindset extends to the adoption of electric vehicles (EVs) transporting Milo ingredients between both points and we aim to procure an additional four trucks within the next six months, with the aim of transforming the route into a 100% green corridor,” he said at the unveiling of the first of its electric truck by Transport Minister Anthony Loke Siew Fook.

Aranols said the EV initiative, carried out in collaboration with its logistics partners Swift Haulage Sdn Bhd and Trumas Damai Sdn Bhd, Shell Malaysia and Volvo Trucks, was one of several initiatives under the company’s “Milo Sayang Bumi” or Milo Loves Earth initiative to reduce the company’s carbon footprint.

He said the company had launched its biomass boiler at the plant three months ago, which will reduce carbon dioxide emissions by around 14,000 tonnes annually.

“We have also made significant strides in sustainable packaging, including transitioning to 100% paper straws, preventing over 250 million plastic straws from entering the environment each year.

“Today, three years after implementing this change, we are still the only large drinks and milk manufacturer that has adopted this change,” Aranols said, adding that Nestle had also engaged communities to promote recycling, collecting over 20,000 tonnes of post-consumer waste a year.

Aranols said Nestle Malaysia managed to reduce its total emissions by 25% at the end of last year compared with 2018 and this was achieved two years ahead of its initial plan.

This, he said, puts the company firmly on track towards its global goal of halving its emissions by 2030 and reaching net zero before 2050.

Loke commended Nestle Malaysia’s green-logistics initiative to use electric trucks, adding that this is in line with the national objective of reducing carbon emissions and promoting sustainable transportation solutions.

“The transportation sector is the second-biggest contributor of carbon emissions at 30% and the government wants to reduce this.

“We will continue to support such initiatives and I wish to encourage more companies to follow Nestle’s lead in embracing responsible and innovative technologies that can minimise environmental impacts, while supporting efficiency,” he said.

Loke said under Malaysian law, the owner of a prime mover and the trailer had to be the same but Nestle had sought a special approval to use the services of different companies as part of its plans to reduce carbon emission.

“Since this is a pilot project to reduce carbon emissions, we decided to give Nestle the go-ahead on a proof-of-concept basis.

“This is the first time we are giving different owners, meaning someone who owns the prime mover and another who owns the body of the truck, to provide a transportation service to their customer, which is Nestle,” he said.

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