Mondelēz International invests $200m in Opava biscuit facility of Czech Republic

Mondelēz International has invested $200m in its biscuit production facility in Opava, Czech Republic. This facility manufactures product brands such as Oreo, belVita, Milka and Cadbury for the European market.

The investment in the plant has been ongoing since 2014 and forms part of the company’s global growth strategy, which is focused on the creation of an integrated supply chain.

The development also builds on Opava’s history as a biscuit-manufacturing hub for more than a century.

Mondelēz International integrated supply chain executive vice-president Daniel Myers said: “The investment in our Opava plant is a great example of our global effort to build a world-class supply chain that reduces complexity and increases flexibility, while being cost-conscious.

“We’re focused on winning with our consumers and customers, and we’re becoming a more nimble organisation as we simplify and modernise our operations and production capacity for today and the future.

“By undertaking these changes, we’re making our company more efficient, creating the fuel we need to invest in our brands and our people, our most important assets, and deliver sustainable, profitable growth for our shareholders.”

Mondelēz Europe EVP and president Hubert Weber said: “Our growth story in Europe continues thanks to the investments we have made in Opava, one of the most modern factories in our network and a leading producer of biscuits for our European markets.

A number of the company’s biscuit brands such as Oreo, Milka, Cadbury, TUC and Chips Ahoy! previously posted double-digit growth in revenues across Europe in 2017.

Weber continued: “The five state-of-the-art manufacturing ‘Lines of the Future’ installed here have enabled us to improve the speed, efficiency, effectiveness and quality of our biscuit production, while improving competitiveness in the European market.

“The modern production lines enable us to meet growing demand from European consumers for our Power Brands, while other factories in our network continue to produce the local and regional heritage brands that consumers have loved for generations.”

According to the company, the biscuit production process at the Opava facility requires little energy and water compared to other plants.

The site has also been categorised as a zero-waste-to-landfill facility.

The Opava plant is the latest of the company’s facilities to have been opened or upgraded in the last few years.

Upgrade works have also recently been conducted at the company’s sites in Sri City, India; Salinas, Mexico; and Bournville, UK.

Mondelēz also opened a new manufacturing facility in Bahrain in April.