U.S.-based Mondelez International Inc. plans to spend $110 million to build a new facility in the Novosibirsk region of Russia despite the current political tensions. The new facility is expected to be Mondelez’ most advanced facility in Russia with the capacity to produce 50,000 tons of snack foods annually. The company plans to move ahead with the expansion in Russia even as the U.S. and the EU are threatening to step up economic sanctions against the country. The move is part of a previously announced plan by Mondelez to save $1.5 billion in net productivity and increase cash flow by $1 billion over the next three years by capitalizing on demand in emerging markets.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free bi-weekly enhanced eNews service