When the plant becomes completely operational, it will have a production capacity of 30,000 tons of milk powder, enabling the company to meet growing consumer demand for dairy products with added nutritional value.
The factory, which is located in the region of Osorno in southern Chile, will provide 300 direct jobs and 1,500 indirect jobs.
Nestlé chief executive officer Paul Bulcke said that the factory will produce dairy products with added nutritional value that meet the different needs of its consumers, both in Chile, Latin America and in other countries around the world.
"Through continuous investment and innovation we are always striving to provide our consumers with products that meet their nutritional needs at every stage of their lives," Bulcke added.