By Dow Jones Business News, October 04, 2013, 01:33:00 AM EDT
By Jason Ng
KUALA LUMPUR--American candy maker Hershey Co. ( HSY ) Friday said it will build a $250 million confectionary plant in
Malaysia, boosting its presence in Asia to meet growing demand for its products.
The plant in the southern state of Johor marks the single-largest investment in Asia since the Hershey, Pa.-based
company set foot in the region 18 years ago. Like other global food firms, Hershey is seeking to tap into surging demand
for discretionary food items from developing nations in Asia.
"Adding this new manufacturing capacity will put us in a strong position to meet the growing demand for our products
across the region," Terence O'Day, Hershey's senior vice president and chief supply chain officer, said in a statement.
Hershey expects the plant to be ready in early 2015. The company has nine other plants in the U.S. as well as
facilities in Canada, Mexico, India, Brazil and China. "Our new Malaysia plant will complement production at our
existing joint-venture plant in China," Mr. O'Day said.
Production capacity details weren't mentioned but the statement said the plant will produce four of Hershey's five
global brands, including "millions of Hershey's Kisses" each day.
Hershey is expanding in Asia as part of an ambitious global goal to achieve $10 billion in annual revenue by 2017.
International sales is expected to reach about $1 billion by end of 2014, the company said.
Write to Jason Ng in Kuala Lumpur at email@example.com
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