Kerry invests €30m in Taste facility in Indonesia
Food technology and ingredients company Kerry Group is set to increase its footprint in South East Asia (SEA) by building a second manufacturing facility in Karawang in Indonesia.
Kerry said the new facility is its largest ever capital investment in South East Asia and will significantly expand Kerry's Taste offering in the region and further support customers in the fast-growing markets of SEA.
The new €30m plant will be Kerry's second manufacturing site and third facility in Indonesia.
Construction has started and the plant will be operational late 2022, Kerry said.
A wide range of flavour technologies will be manufactured in Karawang, allowing the new site to support Kerry's fast-growing taste business and its food and beverages systems across all food categories.
John Savage, CEO of Kerry's Global Taste division, said the construction of the new manufacturing site demonstrates the company's commitment to its customers in Indonesia and the South East Asia region.
"This new facility will strengthen our competitiveness as we work with customers to deliver our Taste portfolio of solutions and bring excellent and authentic tasting products to market," Mr Savage said.
"The South East Asian taste market is valued at circa €900m and growing in strong single digits with a huge opportunity for further development and innovation," he added.
Last week, Kerry Group said that negotiations with Kerry Co-Op over a potential transaction involving its dairy-related businesses in Ireland the UK were suspended.
The development came after the stalling of talks on a possible dairy joint venture involving the two organisations, as part of a strategic review being conducted by Kerry Group.
The deal would have seen Kerry Co-Op take a 60% stake in the Kerry Group dairy-related businesses in Ireland the UK, with Kerry Group retaining the remaining 40%.