US snacks-to-cereal group Kellogg has invested US$130m to construct a manufacturing facility in Bandar Enstek, Malaysia, that will serve as a production hub for the group's snack brands in the Asia Pacific region.
A spokesperson for the company told just-food the 30-acre site will initially produce halal certified Pringles. Kellogg plans to extend production to include its other snack brands, the spokesperson revealed.
"The new Kellogg’s Malaysia manufacturing plant will be a regional snacks hub initially producing halal certified Pringles and in the future halal certified Kellogg branded snack foods for Malaysia and other Asia Pacific markets," the spokesperson said.
Kellogg has been investing in increasing its presence in emerging markets to offset a lacklustre growth outlook for its US and European cereal business. Last month the company established a joint venture in Western Africa with Tolaram Africa, the local arm of Singapore-based conglomerate Tolaram Group.
In its most recent financial update, released in August, Kellogg revealed that currency-neutral comparable net sales in its Asia and Sub-Saharan Africa reporting region increased at a double-digit rate. This came in contrast to declining group sales, with weaker snack revenue and ongoing declines in Europe dragging the group result down.