Cadbury Schweppes Confectionery Factory, Skarbimierz, Poland

Cadbury Schweppes started the construction of a new chewing gum factory in Poland in September 2006. Sir John Sunderland, the Chairman of Cadbury Schweppes, one of the largest global chewing gum producers, was in Poland with Piotr Grzegorz Woźniak, the Polish Minister of the Economy, to lay the cornerstone for the factory. Over 60% of the world market for chewing gum is shared between the US manufacturer Wrigleys (35%) and Cadbury Schweppes (26%). Cadbury is the top selling gum producer in 18 countries, including Canada, Brazil and Denmark.

Cadbury Schweppes has recently released a product on the British market; Trident was rolled out in January 2007 and is currently manufactured in France. Trident is said to be the top teeth-whitening gum in the US and it recorded 20% worldwide growth in 2005. According to Cadbury, the global gum sector will be worth more than $19bn in 2006 and has grown more than 7% during the past three years. A Cadbury Schweppes spokesperson said: "The launch of gum in the UK is part of Cadbury Schweppes’ strategy to significantly grow its share of the world’s confectionery market."

NEW INVESTMENT

The investment for the new factory is estimated at €100m (out of a total investment in November 2006 of €148m between Poland and Mexico). The new plant will be located in Skarbimierz, at an old military base which is an extension of Wałbrzych Special Economic Zone. The Cadbury Schweppes investment is the largest foreign direct investment (FDI) into the food industry, channelled into building a new factory on a greenfield site in the last ten years.

NEW FACILITY

The new facility will be one of the most advanced chewing gum factories in the world. Production is expected to start in 2008. By then, the facility will be fully equipped and ready to produce sugar-free chewing gums. The factory will employ up to 500 people over the next few years and over 50% of them are expected to be women.

The construction work for the new facility will be managed by Bovis Lend Lease, a specialist in project and construction management. At present the works are focused on preparing the grounds and tender procedures covering the first stages of the investment. Investment agreements have already been signed by the representatives of the Opolskie Voivodship self government, Skarbimierz Commune and Cadbury Schweppes. The Commune is obliged to develop a track of investment land for the future factory and the voivodship authorities promised to transfer PLN4.158m of direct financing for necessary works connected to the project over the next two years.

Skarbimierz Commune will spend PLN3m to finance reparation and construction of 6km of roads, and the construction of sewage and anti-storm systems; it will also allow for waterworks construction. This agreement also relies on the Skarbimierz Commune accelerating the road infrastructure improvements from Skarbimierz to the A4 highway, with a loop around Bierzów; the budget for this is estimated at PLN16m.

Cadbury Schweppes will also purchase, for €3m from Skarbimierz Commune, a 60 hectare plot of land. This will be only the preliminary contract because the sides are waiting for the decision of Polish government concerning incorporation of these grounds into the Wałbrzych Special Economic Zone. Marlena Falkenberg from INVEST-PARK, the partnership managing the Zone said: "We have already applied to the Ministry of Economic Affairs and soon we are expecting the settlement."

REASONS FOR CHOOSING POLAND

Judith Pickering, director of the investment programme at Cadbury Schweppes, underlined that the choice of Skarbimierz as a location for the new plant was influenced by good road infrastructure around the investment land, the high qualifications of the labour force in Opolskie Voivodship, as well as the excellent support from the local authorities that the company received when showing interest in the region. The high level of unemployment in the Brzesko district was also important for the new plant, since it will mean a large choice of human resources potential for the factory.

CHEWING GUM PRODUCTION

Chewing gum comes in a variety of flavours and forms. The gum produced at the new factory is likely to be rectangular dragée gum pellets (a pillow-shaped coated pellet packed in blister packs) and centre-filled gum (containing a liquid flavour centre).

Chewing gum is a combination of a water-insoluble gum base, and a water-soluble phase of sweeteners, flavouring and food colouring. The gum base is melted at a temperature of about 115°C (240°F), until it has the viscosity of syrup. It is then filtered through a fine mesh screen, and refined further by centrifuging further filteration. Clear gum base in the molten form is then put into mixing vats. Other ingredients are added including powdered sugar, corn syrup and glucose (which serve as humectants coating the sugar particles and stabilising their suspension, keeping the gum flexible), various softeners, food colourings, flavourings and preservatives.

The homogenised mixture is then poured onto cooling belts and cooled with cold air. Extrusion, rolling and cutting, and other shaping operations are then carried out and the pieces are then put aside to set for up to two days. Coated chewing gums are then treated with undercoating for superior binding with the final layers and then immersed into a liquid sugar mixture. The pellets are cooled and may then then be coloured and coated with a suitable glazing agent, usually a carnuaba wax.