Kellogg is to build a snacks factory in Malaysia as part of plans to up its investment in emerging markets.

The US food giant said the site, 60km south of the Malaysian capital Kuala Lumpur, would increase its capacity to manufacture Pringles for markets in Asia Pacific. The new factory will create at least 300 jobs, it said.

Kellogg is restructuring its production network to lower costs to provide resources to invest behind brands in developed markets and expand in emerging economies.

Last month, Kellogg announced plans to close plants in Australia and Canada, as well as to expand a cereal and snacks factory in Thailand.

Announcing the investment in Malaysia today (10 January), Kellogg president and CEO John Bryant said: "We have a compelling business need to better align our assets with marketplace trends and customer requirements. To that end, we are taking action to ensure our manufacturing network is operating the right number of plants and production lines – in the right locations – to better meet current and future production needs and the evolving needs of our customers."

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Kellogg Company Builds New Malaysian Snacks Plant as Part of Project K Efficiency and Effectiveness Initiative

Kellogg Company today announced that it will build a new snacks manufacturing facility in Malaysia, as part of its recently announced Project K four-year efficiency and effectiveness program. Project K is unlocking cost savings that Kellogg will invest in its strategy and grow its business. Through Project K, Kellogg is strengthening its existing business in core markets, increasing growth in developing and emerging markets, and driving increased value-added innovation.

The new facility, in Bandar Estek, Negeri Sembilin, will increase Kellogg Company’s Pringles production capacity in the Asia Pacific markets, and create at least 300 jobs, locally.

“Our acquisition of Pringles in 2012 marked the beginning of an exciting new era in the evolution of our global snacks business,” said John Bryant, President and CEO, Kellogg Company. “The decision to invest in a new snacks manufacturing facility – and build our capacity and capability in Asia Pacific – is the next step in that journey.”

Construction of the new plant will begin immediately. The facility is expected to be

This strategic investment is in line with two of Kellogg Company’s four business strategies – becoming a global snacks player and building our emerging markets footprint.

“We have a compelling business need to better align our assets with marketplace trends and customer requirements,” said Bryant. “To that end, we are taking action to ensure our manufacturing network is operating the right number of plants and production lines – in the right locations – to better meet current and future production needs and the evolving needs of our customers.”

Original source: Kellogg