Milling & Baking News - September 15, 2015 - 24

International X

Mondelez grows with new
chocolate production line in Poland
SKARBIMIERZ, POLAND - Mondelez
International continued its strategy of
creating a global "best-in-class integrated supply chain" by opening a new
$30 million chocolate production line in
Skarbimierz. The new line will capitalize on growing demand in Mondelez's
European confectionery business, the
company said.
"We strongly believe in the growth
opportunities in Europe's snacking market," said Jurgen Leisse, president of Central Europe for Mondelez International.
The new line is expected to increase
capacity, operate more efficiently and offer greater flexibility through its modular
design, Mondelez said.
The new line is a first within the company's manufacturing network in Poland and only the second in Central Europe. Mondelez said the investment will

support the growth aspirations of the
company's chocolate and biscuit categories by enabling production of innovative snacking product formats for brands
such as Milka, Oreo, Cadbury and Terry's

Chocolate Orange, as well as the local
Polish brand 3Bit.
This is the first major investment in
the Skarbimierz facility since its opening
in 2010. The products from this plant are
sold in domestic and international markets. The investment builds on Mondelez
International's earlier investment of $15
million to establish a global research and
development center in the Wroclaw area.

Nimman Foods to acquire
Modern bread business
MUMBAI, INDIA - Nimman Foods
Private Ltd., an investee company of the
Everstone Group, has agreed to acquire
the bread and bakery business of Hindustan Unilever Ltd. (HUL). Financial terms
of the transaction were not disclosed.
HUL said its decision to divest is in line
with its strategy to exit non-core businesses, while continuing to drive its growth
agenda in the core packaged foods business. The transaction includes the sale and
transfer of the Modern brand and business.

HUL and Everstone said they will
work together to secure the necessary approvals to complete the transaction over
the next few months. HUL will continue
to manage the operations until the completion of the transaction.
"Modern is an iconic brand that has
been delighting consumers over the years
through its range of high quality bread and
value-added bakery products," said Sanjiv
Mehta, chief executive officer and managing director of HUL. "Since its acquisition

Royal DSM announces plans to
cut 900 to 1,100 positions
HEERLEN, THE NETHERLANDS -
Royal DSM plans to reduce its workforce
by about 900 to 1,100 positions, which
will result in structural savings of €125
million to €150 million ($143.1 million to
$171.7 million), the Heerlen-based company said Aug. 25. The adjustments to
its organizational and operating model
will include a business growth and efficiency program for its Nutrition business, which DSM will detail at its capital
markets day on Nov. 4.
About half of the position cuts will be
made in The Netherlands. The reductions
should be implemented fully by the end
of 2017. One-time restructuring charges,
including severance costs, are estimated
24 / September 15, 2015 XMilling & Baking News

at €150 million to €175 million before tax.
DSM will establish an eight-person executive committee to enable faster strategic
alignment and operational execution.
DSM said a further standardization of
processes, delayering and elimination of
duplications will result in a more efficient
pooling of resources. The new organizational model will apply to finance, human
resources, legal, information technology,
business services, indirect sourcing, communications, corporate departments and
regional centers. DSM plans to implement efficiency measures in its research
and development centers globally.
DSM business groups will remain the
cornerstone of the company, said Feike

Mondelez Poland has operated in the
Polish market for 23 years. Its portfolio
includes snacking brands such as Milka
and Alpen Gold chocolates, Prince Polo
wafers, 3Bit candy bars, Milka, Oreo,
belVita, Petitki, Lubisie, Delicje, San and
Lakotki biscuits and Halls candies. The
company has seven manufacturing sites
in the country. The plants in Jankowice,
Bielany Wroclawskie and Skarbimierz
produce chocolate products.
Skarbimierz is also home to a chewing
gum plant. Plants in Jaroslaw, Cieszyn
and Plonsk produce biscuits and wafers.
The company employs approximately
3,300 people in Poland.
Earlier this year Mondelez said it would
invest $130 million to install four manufacturing lines, dubbed "Lines of the Future,"
at the company's Americas production facility in Salinas, Mexico. The new lines are
expected to be completed by the middle of
2016 and will replace nine older, inefficient
manufacturing lines at the company's Chicago biscuit plant. MBN
in 2000, HUL has strengthened the Modern
business, driven consistent top-line growth
and significantly improved profitability.
Having turned around the business and
built a sustainable growth model, we believe that the sale to Everstone will unlock
the full potential of the Modern brand."
HUL's bread and bakery business consists of a full range of white and sweet
bread, health and wellness bread and value-added bakery products such as cakes,
muffins, buns, pavs and cream rolls under the Modern brand name. The business currently has six operating manufacturing units and a network of franchisees
across India. MBN
Sijbesma, chief executive officer and
chairman of the managing board for Royal DSM, in an Aug. 25 conference call.
"They can fully focus on what they
should focus on: innovation, R.&D., direct sourcing, manufacturing operations,
and marketing and sales," he said.
DSM's Nutrition business is active in
such areas as vitamin E, omega-3 fatty
acids and infant nutrition. In the second
quarter of this financial year the Nutrition business had EBITDA of €208 million, down 6% from the second quarter of
the previous year, and net sales of €1,247
million, up 16%. Overall in the second
quarter DSM reported EBITDA of €279
million, up 6%, and net sales of €1,965
million, up 12%.
The company's reorganization plans
come after several years of acquisition activity. MBN
bakingbusiness.com / world-grain.com

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Milling & Baking News - September 15, 2015

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