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Mondelez India

Mondelez spending $190m on Asia Pacific plant

Mondelez International is investing $190-million (R1,98bn) in a 134-acre multicategory plant in Andhra Pradesh, India. This announcement follows news last month that Mondelez would be making another massive investment, a $100-million Oreo and Belvita plant in the Czech Republic.

The company says the plant will be its largest in the Asia Pacific and largest chocolate plant in India, with an annual product capacity of 250,000 tons.

Daniel Myers, executive vice-president, integrated supply chain, says this investment is part of a number of programs the company is implementing to capitalise on emerging markets’ growing demand for FMCG products, while reducing costs and improving productivity.

“During the past three years, we’ve invested nearly $200-million to expand existing operational facilities in India,” says Manu Anand, president for India and South Asia for Mondelez. “We’re delighted to partner with the government of Andhra Pradesh on this new investment, which will help us build on our success in India and drive long-term business sustainability.”

He adds that the new plant will serve as a model for production efficiency, energy savings, emissions reductions and community involvement.

The first phase of the project is expected to be finished by 2015, and finally completed by 2020 and will primarily serve the Indian market to meet the growing demand for chocolate and biscuit products in the region.

Cadbury India, part of the Mondelez International, operates in five categories, including chocolate, beverages, biscuits, gum and candy. Its key brands are Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bourneville, Celebrations, Halls, Eclairs, Tang and Oreo.

Mondelez to spend $100m on Oreo and Belvita plant in the Czech Republic

Mondelez International plans to invest over $100m in a biscuit manufacturing plant at its Opava site in the Czech Republic. The investment will create 200 new roles, making Oreo cookies and Belvita breakfast biscuits.

Since 2009, net revenues for Oreo and Belvita have grown 25% and 18% respectively in Europe. The new plant will create new capacity to allow the business to keep pace with future demand.

“We’ve seen phenomenal growth in our biscuit business in recent years, especially our Oreo and Belvita ‘power brands’,” said Phil Hodges, senior vice president, integrated supply chain, Mondelez Europe.

“This new facility will help us keep up with future demand by creating additional capacity. We’ve used all of our supply chain and R&D expertise to create a state-of-the-art factory with lines capable of making over a million Oreo biscuits a day. After it’s completed, this plant will be a model in our global supply chain network.”

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