£92M Haribo factory ‘is phase 1’
Vennekens told FoodManufacture.co.uk he thought it was unlikely continued growth would take the new factory, once operational, up to full capacity by 2016, but if it did, it had the potential for further expansion. “The factory we are building now is phase one. There could be further phases.”
He said growth in demand for products including Tangfastics and Star Mix was the main reason for building a second factory, which it expects to create 286 jobs. Its current facility, which employs 540 people, is close by at Pontefract, also in West Yorkshire.
UK demand was rising across the board for its products, said Vennekens. “The growth is coming literally from everywhere: supermarkets, the high street, wholesalers, independents ...”
Export markets
The Castleford plant would predominantly serve the UK, but would also meet growth in export markets, he added. “Over the past few years we have been exporting to countries such as Japan, North America and Australia.
“The new factory, once operational, will have the capacity to supply these markets as well.”
There was considerable further growth potential in the product segments in which Haribo was active, he felt. “While confectionery is relatively stable, the segments we are operating in are growing quite well ... There is a trend towards soft eating (jellies).”
Seasonal product lines, targeting events such as Easter, Christmas and Hallowe’en also offered big returns, he said.
FoodManufacture.co.uk first revealed in April 2011 the company’s desire to build the plant on land it had acquired on the border of Castleford and Normanton.
In a statement released today (October 10) on the new build, Vennekens explained: “Our existing factory is near capacity and so this new site will allow for progressive expansion, enabling us to continue to extend our offering and to develop new and innovative products.
“Haribo has performed extremely well within the UK market during the last 12 months, and over the last six years it has experienced double digit growth year-on-year.”
48,000t of sweets
The 30,700m2 site, which is situated at junction 31 of the M62, will be able to handle 48,000t of sweets annually.
The investment in the Castleford plant had been backed by a £6.4M grant from the government’s Regional Growth Fund as part of Round 1 of the scheme.
Government business secretary Vince Cable visited the site today (October 10) as construction work, for which Wates Construction is the preferred contractor, began.
“The Regional Growth Fund is supporting firms, small and large, across the country to expand, complementing the government’s industrial strategy,” said Cable.
“Round 5 opens for applications tomorrow [October 11] and I urge businesses to see how it can help them hire more people or expand to new markets.”
The closing date for bids for cash from the Regional Growth Fund, which private sector businesses can claim £1M or more from, is December 9.
Councillor Peter Box, leader of Wakefield Council, welcomed Haribo’s announcement. “The new Haribo factory at Castleford is a sure sign that this district is moving forward, creating jobs and economic growth which will benefit everyone who lives and works here.
“I am proud and pleased to be part of the opening of such an important new workplace in the Wakefield district.”
