The Haguenau facility in Alsace won the €40m investment ahead of another Mars factory in Janaszowek, Poland after improving its cost efficiency by 20% in the last three years and expanding production capacity by 10% in 2011.
M&M production boost
The site currently provides around 90% of M&Ms to the European market and also produces a significant portion of the company’s Mars bars.
Mars France said in a statement to ConfectioneryNews.com: “This decision was taken to respond to the increasing demand of M&M’s on the European market. It aims at increasing the production capacity of the Haguenau firm by 20 % in order to respond to this demand.”
“The investment will mainly aim at improving, modernizing the equipment and the machine and optimising the existing surface,” it said.
Mars is expected to recruit an additional 30 people to meet the new production demands.
€5m green initiative
Mars added in its statement: “This €40m investment will also be accompanied by a €5m investment in order to reduce greenhouse gas emissions by 60% by ensuring its supply in ‘green steam’.”
Mars France is currently finalising a partnership with energy firms Sita and Cofely of GDF Suez and Suez Environnement.
The Haguenau factory is expected to benefit from this partnership by using the energy produced from the treatment of residual waste to reduce its emissions by 60%.
Alsace sites
Mars has another site in the Alsace region at Steinborg. Combined, the two sites employ around 1,200 people.
The latest investment is only for Haguenau but, between 2007 and 2010, a combined €65m has been invested in the two sites.
The Haguenau site was the first to be constructed in 1974. It is export orientated, with over 75% of produce being exported to around 30 countries mainly in Europe.
The renovation is expected to be completed in 2013.