The company said construction of the facility in the southern state of Selangor is expected to be complete by mid-2015 and reports suggest the build will set Kellogg back around $130m. The plant will be dedicated to production of Pringles for the Asia Pacific region and will create at least 300 local jobs.
The move is part of the company’s Project K – a four year efficiency program that will see Kellogg axe 7% of its global workforce by the end of 2017 but make an estimated $425-475m in savings by 2018. In December last year, the firm closed its Australian snacks plant and expanded its Thailand cereal and snacks plant as part of the strategy.
At the end of 2013, Kellogg also relocated its Asia Pacific headquarters to Singapore to strengthen its long-term growth ambitions, it claimed.
Kellogg’s president and CEO John Bryant said the latest move to build a new plant in Malaysia represented the company’s dedication to strengthening its snacks hold across Asia Pacific.
“Our acquisition of Pringles in 2012 marked the beginning of an exciting era in the evolution of our global snacks business… The decision to invest in a new snacks manufacturing facility – and build our capacity and capability in Asia Pacific – is the next step in that journey,” he said.
“We have a compelling business need to better align our assets with marketplace trends and customer requirements… To that end, we are taking action to ensure our manufacturing network is operating the right number of plants and production lines – in the right locations – to better meet current and future production needs and the evolving needs of our customers.”
APAC president: Driving Pringles deeper into Asia
Kellogg’s Asia Pacific president Amit Banati previously told BakeryandSnacks.com that Kellogg was ready to drive Pringles deeper into Asia .
“We feel very excited by the opportunity. The snacks category is an established one that is significantly larger than breakfast in Asia Pacific and Pringles is an iconic brand and well-loved across the region,” he said.
Banati flagged Southeast Asia as a growth opportunity in the region, along with India and China and said the company planned to adapt formats and flavors according to local demands and trends.
Pringles has a mix of 'traditional' flavors across the Asia Pacific - including garlic seafood, grilled shrimp, seaweed and braised pork.