Mondelēz to close two facilities in Brazil

American snacks giant Mondelēz has decided to close two production facilities in Brazil as part of its global strategy.

The company will shut down its facilities in the cities of Bauru and Piracicaba and move production to factories in Curitiba and Vitória de Santo Antão.

The transition is scheduled to finish by the end of 2018, after which Curitiba and Vitória de Santo Antão facilities will become the company’s two largest manufacturing facilities in Latin America.

A Mondelēz spokesperson said in a statement: “Since 2014, the company has been thoroughly reviewing its supply chain with the goal of maintaining economic sustainability and business evolution in the mid and long terms.

“These plants are assuming an even more important role in this new scenario by its multi-category structure, favourable geographical location and robust experience at manufacturing processes and logistics.”

Upon completion, the company will produce confectionery, cream cheese and powdered desserts at the Curitiba factory. Chocolate products and biscuits will be manufactured at the Vitória de Santo Antão facility.

Mondelēz assured that it remains committed to its operations Brazil, and despite the changes its manufacturing volume in Brazil and for Brazil remains the same.

Earlier in February, Mondelēz opened a new research and development facility in Singapore as part of a $65m investment programme.

The Singapore Technical Centre will be the company’s sixth technical facility, and joins similar facilities in New Jersey in the US, Curitiba in Brazil; Bournville and Reading in the UK, and Wrocław in Poland.

The company also plans to open additional technical centres in India, Mexico and China during 2018 and 2019.