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Mondelez to invest £75million in Bournville factory

24 January 2014

Mondelez International, the US owner of Cadbury plans to pour £75million of investment into its Bournville headquarters in Birmingham.

Over a period of three years, four new production lines and brand new equipment will be created, bringing with it greater job security.

The Bourneville facility currently produces some of the firm’s most popular chocolates, such as Dairy Milk, Crème Eggs and Wispas.

Chicago based Mondelez International was previously part of Kraft and paid £11billion to take over Cadbury in 2010. The firm said it would be the first significant investment in the plant for 30 years and will include replacing production lines as well as building new ones.

Mondelez said securing the investment depended on the results of consultations with employees to cut costs and change ways of working. The changes, combined with the investment ‘will help to close the competitiveness gap between Bournville and its competitors as well as sister factories in Germany and western Europe’, Mondelez said in a statement.

Consultations will centre on improving competitiveness, working more flexibly and investing in training.

Neil Chapman, manufacturing director of Chocolate UK for Mondelez, said: "The competitiveness gap we have identified means we are already missing out on important opportunities to grow. We want to hear as many ideas as possible from our employees on how, alongside our £75m investment, we achieve improvements that boost competitiveness, thereby securing the next generation of manufacturing at Bournville."

The Bournville factory employs about 960 people. Unite national officer Rhys McCarthy said: "This investment is good news and the union has been working with Cadbury to get the best deal possible for workers during this restructuring. It is yet another example of success when unions and employers work together in the manufacturing industry."

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