Mondelez International has opened a $22 million facility in Shah Alam, Malaysia, aimed at producing chocolate crumb locally, which is essential for Cadbury products. This move is expected to cut supply-chain lead times by at least two months, reducing import and transportation costs.
Nitin Binnani, vice president of customer service and logistics for AMEA at Mondelez, emphasized that this facility will support the company's volume growth in Southeast Asia, where it already has a significant manufacturing presence. The Shah Alam plant is the sole Cadbury manufacturing hub in the region, producing over 130 chocolate varieties and around 100 million bars annually.
The easing of cocoa prices, following a two-year rally due to adverse weather and poor harvests, also plays a role in this expansion. Mondelez's strategy aligns with its broader goal of increasing its footprint in the Southeast Asian snacking market, with existing facilities in Indonesia and Thailand serving both domestic and international markets.
This expansion reflects a growing trend among U.S. companies, including Cargill, which is also increasing its chocolate-related production capabilities in Malaysia