Barry Callebaut has reached an outsourcing agreement with a subsidiary of Argentinean confectionery giant Arcor and plans to build a new factory in Chile.
It is Callebaut’s first outsourcing agreement in South America.
Callebaut agreed a long-term outsourcing agreement to supply compound and chocolate products to Industria de Alimentos dos en Uno (Arcor-Dos en Uno); a Chilean business in the Arcor Group that manufactures sugar confectionery, cookies and chocolate.
Barry Callebaut will construct a $14m factory in Santiago de Chile with a capacity 20,000 tons per year to meet demand.
South American expansion
Barry Callebaut CEO Juergen Steinemann, said: "This is a very important milestone as it is our first long-term outsourcing agreement in South America, which will support Barry Callebaut's business expansion in the region.”
“With our new factory in Santiago de Chile, we continue to expand our manufacturing footprint in South America, in order to tap the region's promising growth potential."
Barry Callebaut already has a presence in Latin America. It invested $40m in a new facility in Mexico in 2009, where it has a supply deal with bakery giant Grupo Bimbo.
Supply to start in 2014
Callebaut will start supplying Arcor Chile when its new facility opens in early 2014. Financial details were not disclosed.
Arcor-Dos en Uno manufactures products for the domestic Chilean market and also exports to the Ecuador, Colombia Peru, Paraguay and Uruguay.