Japanese confectioner Morinaga is to open its first Hi-Chew production facility in the US to meet increasing demand.
Its subsidiary, Morinaga America, will invest US$48m to set up the 20-acre facility in Orange County, North Carolina, which will also produce blending syrup, sugar, flavorings and other ingredients to manufacture the soft candy.
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Production is slated to start in the middle of 2015 and the move will create 90 jobs over a three-year period.
Hi-Chew, which is produced in Taiwan and exported to the US, has seen an “explosion” in demand over the past few years.
Morinaga America CEO Masao Hoshino said: “It is a testament to the strength of our brand that after a few short years in the United States we were able to move forward with this endeavour.”
Chief operating officer Terry Kawabe added: “With the recent growth of Hi-Chew, beginning production in the United States made sense for us from a logistical standpoint.”
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By GlobalDataMorinaga America is to receive a performance-based grant of up to $264,000 from the One North Carolina Fund, which provides financial assistance. Salaries will vary by job function, but total wages are estimated to be more than $3.4m plus benefits.
Morinaga last month booked an increase in first-quarter earnings, helped by lower lower advertising expenses and higher sales in the period. Its product portfolio also includes chocolate, cookies and ice cream sandwiches.
