Mondelēz International invests $200mn in Czech biscuit plant to promote growth in Europe

Snacks giant, Mondelēz International, has announced that it has invested £200mn in its Opava biscuit manufacturing facility in the Czech Republic to accelerate growth in Europe.

Employing nearly 1,000 people, the state-of-the-art facility produces biscuits from the company’s Oreo, belVita and Milka brands for the European market.

The American multinational said that the investment will add five production lines to the facility and, in doing so, it will help Mondelēz International increase the speed, efficiency, effectiveness and quality of its biscuit production all whilst improving its competitiveness in the European market

“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,” said Daniel Myers, Executive Vice President, Integrated Supply Chain. 

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

“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.”  

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Hubert Weber, EVP and President of Mondelēz Europe added: “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."

Several of the company's biscuit brands, including Oreo, Milka, Cadbury, TUC and Chips Ahoy!, saw double-digit revenue growth in Europe last year.

Aligning with Mondelēz International’s Impact for Growth strategy, the investment will also help to reduce water waste in the production process. 

The funding is the latest in a string of investments by Mondelez International in the biscuit market this year. 

The snacks giant recently opened a new $90mn biscuit production plant in Bahrain and it also snapped up Tate's Bake Shop for $500mn last month.