Mondelez International to invest $59m in Cadbury facility in Australia

Mondelez International has plans to invest A$75m ($59.4m) in its Cadbury Claremont plant in Tasmania, Australia.

The company will invest in new technologies, equipment and automation, as well as focus on improving skills and capabilities of its personnel.

As part of its cost-controlling measures, it plans to axe 50 jobs at the plant by the end of this year.

The company also added that all redundancy conditions of employees’ workplace agreements will be met, as well as provide substantial out-placement support.

Mondelez International area vice-president Amanda Banfield said: “Over past five years, we have invested $110m in Tasmania, and today are announcing a further $75m commitment to be spent over the next 18 months.

“Our team here has worked hard to help us become more efficient, cut costs and improve our competitiveness, and as a result, we’ve reduced the cost of converting raw materials into a block of chocolate by 12%.

“But while progress has been made, increasing local and global competition, low-domestic growth, rising costs and Australia’s distance from overseas markets make it difficult to compete against the likes of European factories with lower costs.

To maintain competitiveness in the market, the company stated that it needs to improve its conversion costs by 30% and continue to raise the bar as competition increases further.

Mondelez has been doing business in Tasmania for nearly 95 years, and the company has been periodically investing in facilities to improve efficiency and productivity.

Cadbury’s chocolate manufacturing director Jason Bonisoli said: “The team here has helped us deliver significant waste and cost reductions, safety improvements, and they are learning new skills and reporting increased levels of engagement.

“But we want to keep making great tasting, affordable products here in Tasmania, and the changes we have announced today will create scale and drive costs down to position us to compete for export volume and secure local jobs and the future of manufacturing in Tasmania.

“The changes will help sustain Cadbury’s position as market leader, innovating and making new products that meet consumers’ requirements.”

The Claremont facility was opened in 1922.