Mars Inc is to invest EUR40m to extend capacity at a plant in France, amid very strong growth in the chocolate candy market in Europe.

The company plans to up capacity at its Haguenau plant in eastern France by 20%. The facility produces 90% of Mars’s M&M’s production in Europe. 

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The plant was in competition with Mars’s facility in Janaszówek in Poland, a newer facility but work to lower costs and improve productivity at Haguenau meant it landed the investment, the confectioner said.

Extension work will begin early next year with new production equipment scheduled to be operational in 2013. It will lead to the creation of 30 jobs.

The plant manufactures more than 52,000 tonnes of M&M’s annually, as well as Mars and Milky Way chocolate. More than 75% of its production is destined for export to around 30 countries mainly in Europe.

Mars operates a second chocolate plant in Steinbourg, also in Alsace, and generated an annual turnover of EUR665m in 2010.

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