Swiss chocolate manufacturer Barry Callebaut has signed a long-term sourcing agreement with Industria de Alimentos dos en Uno, a subsidiary of Argentinian food firm Arcor.
Under the terms of the agreement, Barry Callebaut will supply liquid compound and chocolate products to Industria de Alimentos dos en Uno, a Chilean unit of Arcor which manufactures products for the domestic Chilean market and exports to Peru, Ecuador, Colombia, Uruguay and Paraguay.
As a result of the agreement, Barry Callebaut plans to invest CHF13m ($14m) for the construction of a new plant in Santiago de Chile, Chile. The production capacity of the facility will be 20,000 tons per annum.
Apart from meeting the company's requirements, the facility will also supply other regional customers, providing further potential for growth. The facility will be opened in early 2014 and deliveries to Arcor Chile will start immediately thereafter.
Barry Callebaut CEO Juergen Steinemann said this is the company's 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," Steinemann added.
Arcor is a leading manufacturer of sugar confectionery, cookies, chocolate, ice cream and other food products in South America.
