Cloetta Fazer: invests 28,9 million EUR in chocolate lines

Helsinki / FI. (fg) Cloetta Fazer AB has a strong position in the Nordic chocolate market with brands like Karl Fazer, Kexchoklad, Dumle, Geisha, Center and Polly. Sales of the prioritised brands have increased in recent year, creating a need for additional capacity in the company´s chocolate manufacturing. Cloetta Fazer has therefore decided to invest in two new chocolate lines, one at the factory in Vantaa, Finland, and on at the factory in Ljungsbro, Sweden. This will enable the company to continue its focus on the strong brands while at the same time optimising efficiency in the existing chocolate manufacturing. The total investment amounts to 270 million SEK (28,94 million EUR).

Cloetta Fazer has four production facilities, of which two are located in Sweden and two in Finland. In Finland, the Vantaa factory produces chocolate products and the factory in Lappeenranta sugar confectionery. In Sweden, the Ljungsbro factory is focused primarily on chocolate products and Karamellpojkarna´s factory in Alingsas on throat lozenges, toffee and lollipops.

«Because chocolate is currently the most expansive segment of market, we will continue to focus on development of our prioritised brands and aim to offer interesting new chocolate products to the consumers», says Cloetta Fazer´s CEO Jesper Aberg. Cloetta Fazer has a leading position in several geographical markets and its key brands have grown in recent years. «New product launches, delivery reliability and high quality are key success factors, and this investment in our own Nordic factories will give us the necessary conditions to achieve all of these», says Jesper Aberg.

The investment in two new production lines is one of the largest in the company´s history and is a vital component of Cloetta Fazer´s growth strategy. The first products from the new lines will reach the market in 2009. The average number of employees in the Cloetta Fazer Group is 1.500: of whom approximately 600 work in Vantaa and 370 in Ljungsbro.

About: Cloetta Fazer AB is the Nordic region´s leading confectionery company, with a market share of around 22 percent. The subsidiary of the Finnish Fazer Group has production facilities in Sweden and Finland. The average number of employees is around 1.500 and annual sales in 2006 amounted to approximately three billion SEK.