The CHF16m ($17m) facility will annually produce about 7,000 tonnes of products including Resource, Isosource and Sustagen, which are designed for managing diabetes, renal disorders and malnutrition.
Nestle Health Science regional business head Paul Bruhn said the investment by company to extend its Tongala factory into a bigger production hub is based on the its confidence in the region.
"The transformation to our factory creates enormous potential for growth as we develop and roll out new products for local and regional markets," Bruhn added.
In addition, the manufactured products will be distributed across the rest of Australia and to some other countries in the region.