Mondelez is investing US$24m in its Turkish confectionery plant

Mondelez is investing US$24m in its Turkish confectionery plant

Mondelez International is to add a production line at its confectionery plant in Gebze in Turkey.

The move, which involves investment of US$24m, will see production at the facility increase by 20%.

The Gebze plant produces local brands in gum, candy and chocolate as well as global brands like Halls, Milka and Trident. A spokesperson for Mondelez told just-food 40% of Gebze's production is destined for export markets.

In a statement, Antoine Collette, managing director of Mondelez's Turkish operations, said: "This new investment enables us to play an even bigger role in supporting the growth of our global confectionery business. The investment in Turkey is also part of our ongoing supply-chain reinvention plan. We're implementing several such initiatives around the world to capitalise on growing demand, while also reducing costs and improving productivity."

The new line is expected to be up and running by the end of 2015.

News of the investment comes just days after Mondelez announced plans for a notable acquisition in Vietnam. The company is to buy an 80% stake in the snacks business of local food group Kinh Do Corp.

Show the press release

Mondelez International to Invest $24 Million to Expand Confectionery Plant in Turkey

  • Investment will support growth of global confectionery business
  • Part of company's supply-chain reinvention plan
  • Plant production capacity will increase by 20 percent

ISTANBUL, Turkey, Nov. 13, 2014 /PRNewswire/ -- Mondelez International, the world's pre-eminent maker of chocolate, biscuits, gum and candy, today announced plans to invest $24 million to increase capacity of its state-of-the-art plant in Gebze, Turkey, to support growth in the company's global confectionery business.

Mondelez International, Inc. The Gebze plant produces beloved local brands in gum, candy and chocolate, such as Falim, Sipsevdi, Kent, Missbon, Jelibon, Tofita and Topitop as well as global brands like Halls, Milka and Trident. Thanks to the new investment, a complete new line will be added, from processing to final packaging, increasing the plant's overall capacity by 20 percent. The new line is expected to be operational by the end of 2015.

"Today, our plant in Gebze produces for nearly 50 different countries," said Antoine Collette, Managing Director Mondelez Turkey. "This new investment enables us to play an even bigger role in supporting the growth of our global confectionery business. The investment in Turkey is also part of our ongoing supply-chain reinvention plan. We're implementing several such initiatives around the world to capitalize on growing demand, while also reducing costs and improving productivity."

Mondelez International's supply-chain reinvention plan is expected to deliver $3 billion in gross-productivity savings, $1.5 billion in net savings and $1 billion in incremental cash over the next three years. These savings will be a primary driver of significant improvements in the company's base operating-income margin in the near term.

Original source: Mondelez International