Lotte Confectionery plans to invest US$85m in the construction of a confectionery plant in Russia.
Lotte entered the Russian market in 1995. However, this will be the group’s first manufacturing facility in the market, the company reportedly said.
The Korean food and beverage giant will begin work on a new plant in Obninsk, in the Kaluga region, today (11 June). Construction is due to be completed by September 2009.
The facility will manufacture Xylitol chewing gum and Dream Pie, which is also known as a moon pie.
The company intends to further expend its production base in Russia with the construction of another plant to manufacture its popular Peppero snack, the Korea Herald reported.