Barry Callebaut AG, a manufacturer of cocoa and chocolate products, and Industria de Alimentos dos en Uno S.A., a company of the Arcor Group, a manufacturer of sugar confectionery, cookies, chocolate, ice cream, and other food products in South America, have signed a long-term outsourcing agreement.
Under the terms of the agreement, Barry Callebaut will provide Arcor-Dos en Uno with its requirements for outsourced liquid compound and chocolate products. Arcor-Dos en Uno manufactures products for the domestic Chilean market and exports to the Andean region (Peru, Ecuador, Colombia, Uruguay, and Paraguay). The parties agreed not to disclose any further terms of the agreement.
As a result of the agreement, Barry Callebaut will invest CHF 13 million ($14 million) for the construction of a new facility in Santiago de Chile (Chile). The production capacity of the facility will be 20,000 tons per year, which will meet Arcor-Dos en Uno’s requirements, as well as supplying other regional customers while offering potential for further growth. The facility will be opened in early 2014 and deliveries to Arcor Chile will start immediately thereafter.
“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,” said Juergen Steinemann, CEO of Barry Callebaut.