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Supply Chain

Cloetta To Invest In New Sustainable Facility In The Netherlands

Swedish confectionery group Cloetta has announced plans to invest in a new greenfield production facility in the Netherlands as it aims to accelerate margins by consolidating its manufacturing network.

Construction of the facility will commence in 2023 and it will be fully operational in 2026, the company noted.

The investment would incur a total non-recurring net cost of up to SEK 100 million (€9.4 million) and capital expenditures of approximately SEK 2.5 billion (€240 million) over the coming four years.

The facility is expected to generate an additional annual EBIT in the range of SEK 160 million (€15.1 million) to SEK 180 million (€17 million).

'Modernisation Programme'

Henri de Sauvage-Nolting, CEO of Cloetta, said, "The start of the manufacturing modernisation programme we announced today underscores our determination to become a world-class food tech company. A modern production facility would provide a setting for high-quality and competitive confectionery manufacturing as well as opportunities for future expansion.

"Such an investment would enable significant progress towards our long-term profitability target and our commitment to the Science-Based Targets initiative. At the same time, these potential changes would impact many of our colleagues and we are committed to supporting them in this transition."

Cloetta also announced that it plans to close three confectionery factories in Turnhout in Belgium, and Roosendaal in the Netherlands.

As a result, approximately 350 employees in Belgium and the Netherlands would be affected.

The company will offer a majority of these employees a position in the new facility and initiate consultations with the European Works Council and local unions.

© 2022 European Supermarket Magazine – your source for the latest supply chain news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.

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