Hershey to establish new confectionery manufacturing facility in Malaysia

Hershey, a North American chocolate and sugar confectionery manufacturer, is to establish a new facility in Johor, Malaysia, with an investment of $250m.

The investment, which represents the single-largest ever made in Asia in Hershey’s history, is part of its strategy to cater to the increasing demand for its products across the region.

It also forms part of an ongoing modernisation and expansion of the company’s global supply chain to position itself for the next 100 years of growth.

Scheduled for completion in early 2015, the 700,000ft² plant will be one of the largest facilities in the company’s global manufacturing network.

The facility will feature automated candy-making technology, as well as high-speed and specially engineered wrapping technologies.

It will produce four of Hershey’s five global brands – Hershey’s Kisses, Ice Breakers, Reese’s and Hershey’s Milk Chocolate bars.

The Johor location provides Hershey with easy distribution access to more than 25 markets across Asia, a strong supply chain infrastructure and globally recognised Halal food manufacturing certification.

Hershey Asia, Europe, Middle East and Africa senior vice president Peter Smit said, "We are investing heavily in the region as the middle class continues to grow and consumers increasingly want chocolate and new confectionery products."

"We continue to build our iconic brands in the region as China becomes the second-largest market for Hershey in the world," Smit added.

The company is expanding distribution of its five global brands as part of its efforts to achieve annual revenues of $10bn by 2017.

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Image: The facility will produce four of Hershey’s five global brands – Hershey’s Kisses, Ice Breakers, Reese’s and Hershey’s Milk Chocolate bars. Photo courtesy of Evan-Amos.