Cloetta is evaluating how the Group can facilitate further growth in its candy category while accelerating margin expansion by consolidating its manufacturing network and investing in a new greenfield production facility in the Netherlands. The new facility is expected to be fully operational in 2026. This change would generate additional annual EBIT in the range of SEK 160 to 180 million.

The investment would incur a total non-recurring net cost of up to SEK 100 million and capital expenditures of approximately SEK 2.5 billion over the coming four years. Cloetta aims to strengthen its position as a leading confectionery company in Europe. Following a strategic review, Cloetta is planning to upgrade its candy manufacturing network, including establishment of a new greenfield production facility, and thereby facilitate further growth in especially the non-Nordic markets, enable significant cost savings as well as reducing greenhouse emissions.

The new factory would be located in the Netherlands, with construction beginning in 2023 and full operation starting in 2026. At the same time, Cloetta is announcing the intention to close the three confectionery factories in Turnhout, Belgium, and Roosendaal, the Netherlands. The proposal is expected to generate additional annual EBIT in the range of SEK 160 to 180 million with a gradual effect starting in 2025 and with full effect from 2026.

The overall program would at its completion have incurred a total cost including impairments of up to SEK 100 million net of sales of assets. The non-recurring cost would be in the range of SEK 300 to 350 million of whereof approximately SEK 250 million would be charged to operating profit in the second quarter 2022 and be recognised as items affecting comparability. The proposed investment would incur capital expenditures, including capitalized interest, of approximately SEK 2.5 billion over the coming four years.