Givaudan new savoury facility gets underway

04-Mar-2011 - Last updated on 16-Mar-2011 at 16:16 GMT

Givaudan has started the build of its new manufacturing site in Hungary, which it says will increase capacity and grow its savoury flavours business in developing European markets.

On track to be fully operational by the first quarter of 2013, the factory represents an investment of €130m, will create an estimated 300 new jobs and generate new engagements with local Hungarian suppliers to support its activities.

Speaking at an official foundation stone-laying event, Gilles Andrier, Givaudan CEO said; “This facility will become an expanded pan-European savoury flavours manufacturing centre and part of an improved supply chain to support our growth strategy for developing markets.”

Expected to increase overall capacity by around 50%, the new savoury manufacturing plant will produce allergen free, culinary flavour blends, seasonings and spray dried flavours primarily for savoury packaged foods.

Streamlined operation

The firm confirmed that the new Mako plant will take over all savoury flavour production from its Bromborough plant in the UK, as well as part of its production from Kemptthal in Switzerland. The dry powder-blending manufacturing will move from Kemptthal to Mako, while process flavours, spray-dry manufacturing and commercial/marketing and product development/creation will remain in Kemptthal.

“It is expected that normal business operations at Kemptthal and Bromborough will continue until 2012, during which time no changes to the customer supply chain or service are foreseen,” assured Givaudan.

Market opportunity

Developing markets currently account for 41 per cent of Givaudan’s sales, and the company expects this to increase to 50 per cent by 2015.

“The overall objective is to grow organically between 4.5 per cent and 5.5 per cent per annum, based on an assumed market growth of 2 per cent to 3 per cent, and to continue on our path of market share gain over the next five years,” confirmed the firm.

Local support

Givaudan worked closely with key Hungarian organisations to select and develop the site. Located near the town of Mako and the Romanian border, the new facility was chosen with the help of the Ministry for National Economy, the Hungarian Investment Agency HITA and the Mako municipality. It has been developed with Hungarian partners HBM and Market and will continue to grow with the help of other local suppliers.

The Mako region boasts a rich heritage of food production and is well located to access the fast-growing markets of Central and Eastern Europe as well as Western Europe.