Mondelez International plans to strengthen Russian presence

Food and beverage maker Mondelez International has announced plans to strengthen its presence in Russia with an investment of $110m to construct a snack manufacturing facility in the Novosibirsk region.

The plant, which will be spread across 36.9ha area at the Industrial and Logistics Park, will have 50,000t capacity, and will create 180 new jobs.

It will produce brands including Jubilee cookies, TUC crackers, Barney Bear biscuits, and Alpen Gold and Milka chocolates.

The company said that the facility will feature advanced equipment and will comply with international environmental standards.

It will also have a distribution centre, which will allow the company to provide its customers with improved logistics services.

Work on the project will commence in summer this year, and is expected to be completed by the end of 2015.

Mondelez plans to purchase basic ingredients such as flour, sugar and powdered milk from local suppliers.

The investment is part of the company’s strategy to improve its supply chain, with Mondelez currently carrying out various initiatives to capitalise on the increasing demand in emerging markets and working to reduce costs and improve productivity.

The company has made a series of investments this year, including $130m to deploy new manufacturing technology and capabilities at its facilities in Fair Lawn, New Jersey, and Richmond, Virginia; £75m to expand its chocolate manufacturing plant in Bournville, Birmingham, UK; and $190m to establish a chocolate manufacturing facility in Andhra Pradesh, India.

Mondelez International, formerly Kraft Foods, offers chocolate, biscuits, gum, candy, coffee and powdered beverages under brands such as Cadbury, Milka chocolate, Nabisco, Oreo biscuits, and Trident gum.