KUALA LUMPUR, Oct 5 – US-based The Hershey Co will invest RM816 million to build a new confectionery manufacturing plant at the Senai Free Trade Zone in Johor.
Malaysian Investment Development Authority (MIDA) Chief Executive Officer, Datuk Noharuddin Nordin, said the plant, slated for completion in 2015, was Hershey’s single-largest investment outside the US.
“This is a testament to the continued attractiveness of Malaysia for multinationals making substantial commitments in the region.
“This project will bring years of positive economic benefits to Malaysia in the form of jobs and businesses for local suppliers,” he told a media briefing here Friday.
Noharuddin said the plant will be equipped with state-of-the-art technology and be one of the largest facilities in the company’s global manufacturing network.
He said the the move to set up the plant here will also benefit local cocoa producers, especially those which were already supplying it to the US firm.
It was reported earlier that the establishment of the manufacturing plant will definitely benefit local cocoa processors, Guan Chong Bhd, among others.
Hershey said over 90 per cent of the output from the factory will be exported, adding that this was good for the country as it will contribute about RM15 million in exports in the next 15 years.
Senior Vice-President for Asia, Middle East, Europe and Africa, Peter F. Smit, said Hershey anticipated sales of US$200 million to US$300 million within three years from 2017-2019.
The company expected its international sales to reach approximately US$1 billion by end-2014, he said.
Senior Vice-President and Chief Supply Chain Officer, Terence O’Day, said Hershey’s presence in Malaysia will create approximately 400 jobs.
“When this plant ramps up to full potential, there will be even more jobs created,” he said.
At present, operations outside the US contributed between US$650-US$700 million to the company out of the total US$6.6 billion in revenue, he said.
O’Day said Hershey expected a 30 per cent internationl contribution by 2018 based on the growing consumer demand for its products in the region.
MIDA is an agency under the Ministry of International Trade and Industry responsible for the promotion and coordination of investments in the manufacturing and services sectors in Malaysia.
Hershey is the largest producer of quality chocolate in North America and a global leader in chocolate and sugar confectionery.
– BERNAMA
