Mondelez to invest $24m in Turkish confectionery plant

By Caroline SCOTT-THOMAS contact

- Last updated on GMT

Related tags: Investment, Confectionery

The Turkish confectionery market is showing strong growth, up 6% year-on-year in Q3
The Turkish confectionery market is showing strong growth, up 6% year-on-year in Q3
Mondelez International has said it will invest $24m (€19.3m) to expand its Gebze plant in Turkey, as the company continues its plan to increase productivity and cut costs.

The Gebze factory produces several local confectionery brands, including Falım, Sıpsevdi, Kent, Missbon, Jelibon, Tofita and Topitop, as well as global brands Halls, Milka and Trident. The expansion will include adding a complete new line, from processing to final packaging, and is expected to be complete by the end of next year. It will increase the plant’s capacity by 20%.

Managing director of Mondelez Turkey Antoine Collette said in a statement that the Gebze facility produces confectionery for nearly 50 countries.

"This new investment enables us to play an even bigger role in supporting the growth of our global confectionery business,”​ he said. “The investment in Turkey is also part of our ongoing supply chain reinvention plan.  We're implementing several such initiatives around the world to capitalize on growing demand, while also reducing costs and improving productivity."

The company has targeted $1.5bn of productivity savings in the next three years, as well as improved operating margins. It has said it plans to increase capacity by 25% in that time, and has announced plans to build 13 new factories around the world.

At the same time, it plans to close several less efficient plants, including gum factories in Lebanon and Morocco.

Mondelez employs nearly 1,500 people in Turkey.

According to the Turkish government, the country’s confectionery industry has a significant advantage because of self-sufficiency in many key ingredients, including sugar, hazelnuts, pistachios and dried fruits.

Turkish confectioner Ülker says the overall confectionery market in Turkey grew 6% in the third quarter of 2014 compared to the prior year period, with chocolate market growth up 9.2%, biscuits up 4.1%, and cakes up 5.2%.

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