Haribo has announced plans to build a £92m ($109m) factory in Castleford to keep pace with accelerating UK sales.
The company’s existing facility in Pontefract, which is home to 540 staff, is nearing capacity and the company had dropped hints about building a new factory last year.
The new 30,700 sqm site in West Yorkshire will employ 286 people and have an annual capacity of 48,000 metric tons of sweets, including Tangfastics and Starmix, when the facility becomes operational in April 2015.
Double digit growth in UK
Haribo UK's managing director, Herwig Vennekens, said: “This investment in a new facility will enhance Haribo’s production capabilities and help us to meet the growing demand for our products. Our existing factory is near capacity and so this new site will allow for progressive expansion, enabling us to continue to extend our offering and to develop new and innovative products.”
Vennekens said that Haribo had experienced year-on-year double digit growth in the UK over the last six years.
Haribo has been granted £6.4m ($7.6m) towards the facility by the UK government as part of the Regional Growth Fund.
UK Business Secretary Vince Cable visited the Castleford site today as Wates Construction began the building operation.
Haribo is the UK leading gums and jellies brand. It first entered the UK in the Seventies when it purchased shares in Dunhills of Pontefract. The firm later purchased all remaining Dunhills shares in 1994.