In a sign that near-shoring isn’t just a trend for manufacturers in the U.S., food giant Mondelez International says it has cut more than two months off its supply chain for Cadbury’s chocolate by opening a factory in Shah Alam, Malaysia, to produce chocolate crumb.
According to CNBC, the manufacturing facility will be the sole Cadbury manufacturing hub for Southeast Asia, producing more than 130 varieties of chocolate and around 100 million bars annually. The snack company said on September 11 that the $22 million investment brings a key part of its chocolate supply closer to its markets in Southeast Asia, where the company sees opportunities for growth.
Nitin Binnani, vice president of integrated supply chain for SEA at Mondelēz International, told CNBC that making chocolate crumb in Malaysia instead of importing it from Australia and South Africa cuts at least two months from the supply chain lead time.