Barry Callebaut has signed a deal for the supply of compound and chocolate products to Argentine confectioner Arcor-Dos en Uno in South America.

The outsourcing agreement, announced today (23 October), will involve an investment of EUR13m (US$14m) by the Swiss confectioner in the construction of a new facility in Santiago de Chile. The plant will have a capacity of 20,000 tonnes per annum.

The facility is expected be opened in early 2014 and deliveries to Arcor Chile will start immediately thereafter.

Barry Callebaut CEO Juergen Steinemann said this is the company’s “first long-term outsourcing agreement” in South America, which he said will support its business expansion in the region.

“With our new factory in Santiago de Chile, we continue to expand our manufacturing footprint in South America, in order to tap the region’s promising growth potential.”

Arcor-Dos en Uno manufactures products for the domestic Chilean market and exports to the Andean region (Peru, Ecuador, Colombia, Uruguay and Paraguay).

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Neither parties disclosed financial terms of the agreement.