Wawel is investing in operations to increase capacity and improve efficiency as the Polish confectioner eyes expanding its export business.
The company told Just Food the project, scheduled for completion by the end of 2027, will lift capacity at its facility in Dobczyce in southern Poland by around 15%.
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The 96m zlotys ($25.9m) of spending will be used to install new production and packaging lines and invest in technical infrastructure covering energy, cooling and ICT systems.
Wawel will also revamp its packaging machinery to increase automation, support a wider range of formats and “accelerate the introduction of new products”.
“The new technologies will ensure greater efficiency, process stability, and the highest product quality, while also allowing for quicker responses to market needs,” the company said.
In the long term, Wawel said the changes will also support its export capacity, “strengthening” its standing among confectionery companies in Poland and across central and eastern Europe.
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By GlobalDataWawel runs two manufacturing sites: the primary plant in Dobczyce and auxiliary operations in nearby Niezdów, close to Kraków.
It said the Dobczyce site produces almost the entire portfolio, including nearly 20 varieties of plain and filled chocolate in standard and large tablets.
The factory makes chocolate-coated sweets such as Choco & Peanut and filled chocolates including Kasztanki, Tiki Taki and Malaga. Its output also covers jellies, gummies, sugar-free chocolates and wafers.
The investment is being carried out with backing from the Polish Investment Zone scheme via the Krakow Technology Park.
Products from Wawel’s plants are distributed domestically and abroad, reaching more than 50 countries.
The company employs about 1,000 people, with roughly 800 in production, warehousing, technical and back-office roles at Dobczyce and Niezdów.
The project is expected to add jobs, mainly to run new lines and expanded infrastructure.
Wawel reported higher sales in the third quarter and across the first nine months of the year.
Revenue increased 8.3% year on year in the third quarter to 171.9m zlotys, with nine-month sales up 10% to 500m zlotys.
Third-quarter operating profit rose 51.8% to 20.7m zlotys and 14.7% in the nine-month period to 48m zlotys.
Net profit from continuing operations climbed 42.9% in the third quarter to 19.7m zlotys and 12.6% to 47.2m zlotys for the nine months.
In 2024, Wawel recorded revenue of 689.3m zlotys, up 3.9% year-on-year.
Operating profit was broadly unchanged at 77.6m zlotys, edging up 0.1% versus 2023, while total comprehensive income rose 3.8% to 73.8m zlotys.
