Mondelez International Breaks Ground to Expand Biscuit Plant in China Plant Expansion is Consistent with Company's Ongoing Investments in Emerging Markets to Drive Sustainable, Profitable Growth
SUZHOU, China, June 13, 2013 /PRNewswire/ -- Kraft Foods (Suzhou) Co. Ltd., part of the Mondelez International family of companies, today hosted a groundbreaking ceremony for the expansion of its biscuit plant in Suzhou, China. With a total investment of approximately $85 million, the project spans 30,000 square meters (more than 98,000 square feet) and is expected to be completed in August 2014.
The project will more than double the plant's current capacity and create 340 new jobs. The Suzhou plant will feature state-of-the-art production lines to make Oreo and Chips Ahoy! biscuits to meet the growing demand from Chinese consumers. This project is consistent with the company's previously announced strategy to invest in emerging markets to drive sustainable, profitable growth (http://bit.ly/13inaS5).
"We deeply appreciate the Suzhou government's help and support for Kraft Foods China and this project," said Shawn Warren, President of Kraft Foods China. "Since the introduction of Oreo and Chips Ahoy! to China in 1996, the country has become our second-largest market for these brands globally, after the United States, due to our consistent focus on quality, innovation and marketing. After this project is completed, the expanded plant will be a model in our global supply chain network."
"The Kraft Foods' Suzhou plant has set examples in the Suzhou Industrial Park in terms of production efficiency, energy savings, emissions reductions and community involvement," said Madam Sun YanYan, Vice Chairman of the Suzhou Industrial Park Administrative Committee. "We're pleased to see that this project will further drive the development of the local economy."
Mondelez International currently operates two manufacturing plants and a regional biscuit research and development center in Suzhou.
Promoting Energy Efficiency
Kraft Foods China has been actively promoting energy efficiency and emissions reductions at its plants, too. In 2011 and 2012, the Suzhou plants received awards from Suzhou's Industrial Zone for various "green" innovations, including "Air-Compressor and Oven Waste Heat Recovery" and "High Efficient Lighting and Air Conditioning." Those projects save nearly 200,000 cubic meters of natural gas and nearly 1.3 million kilowatt hours of electricity per year, or approximately 685 tons of Standard Coal Equivalent.
In addition, the office building at the Suzhou plant was awarded LEED (Leadership in Energy and Environmental Design) Silver Certification, making it the first project to gain such certification in the company's Asia Pacific region.
About Mondelez International
Mondelez International, Inc. (NASDAQ: MDLZ) is a global snacking powerhouse, with 2012 revenue of $35 billion. Creating delicious moments of joy in 165 countries, Mondelez International is a world leader in chocolate, biscuits, gum, candy, coffee and powdered beverages, with billion-dollar brands such as Cadbury, Cadbury Dairy Milk and Milka chocolate, Jacobs coffee, LU, Nabisco and Oreo biscuits, Tang powdered beverages and Trident gum. Mondelez International is a proud member of the Standard and Poor's 500, NASDAQ 100 and Dow Jones Sustainability Index. Visit www.mondelezinternational.com and www.facebook.com/mondelezinternational.
About Kraft Foods China
Kraft Foods entered the China market in 1984. Headquartered in Shanghai, Kraft Foods China is a leader in the snacks business including biscuits, confectionery and beverages. With about 5,000 employees, Kraft Foods China has established eight manufacturing facilities in Beijing, Suzhou, Shanghai, Guangzhou and Jiangmen. As an important part of Mondelez International, Inc., Kraft Foods China will continue to operate under its present name until it undergoes the legal name change in 2013.
This press release contains forward-looking statements. The words "will," "expect," "drive," and similar expressions are intended to identify our forward-looking statements. Our forward-looking statements involve risks and uncertainties, many of which are beyond our control, and important factors that could cause actual results to differ materially from those in our forward-looking statements include, but are not limited to, continued global economic weakness, increased competition, continued volatility of commodity and other input costs, pricing actions, risks from operating globally, and tax law changes. For additional information on these and other factors that could affect our forward-looking statements, see our risk factors, as they may be amended from time to time, set forth in our filings with the SEC, including our most recently filed Annual Report on Form 10-K. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation.
SOURCE Mondelez International, Inc.