Mondelez International has announced a GBP75m (US$124m) investment into its flagship Cadbury production site in Bournville in the UK.
The investment, subject to a successful conclusion of its employee consultation, will see a revamp of the facilities including the introduction of four new lines which would replace existing out-of-date lines.
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The aim is to bring Bournville to a level where it can compete more effectively with manufacturing facilities in other European markets, Mondelez said.
“This investment would secure the site’s future for the next generation. The competitiveness gap we have identified means we are already missing out on important opportunities to grow,” Neil Chapman, manufacturing director for Mondelez’s UK chocolate business said chocolate UK, said.
“Through our consultation, we want to hear as many ideas as possible from our employees on how, alongside our GBP75m investment, we achieve improvements that boost competitiveness, thereby securing the next generation of manufacturing at Bournville.”
The investment builds on an initial GBP33m investment announced in 2011 to improve competitiveness. Bournville benefited, although around 200 jobs were cut at three other Cadbury sites.
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By GlobalDataMaurizio Brusadelli, president of Mondelez’s business in the UK and Ireland, added: “This substantial investment in Bournville manufacturing will strengthen the competitive advantage of the facility on an international level, and will deliver a strong platform for developing our people and skills for the future. It will also contribute to the company’s strategic goals of driving growth and improving margins.”
The then Kraft Foods took over Cadbury in 2010 before splitting in 2012 into a US-focused grocery business and a global snacks supplier – which was renamed Mondelez.
