Haribo, the iconic gummy bear manufacturer, has announced a significant investment in a new factory in Neuss, Germany. The new facility, set to replace an existing one, will be twice as large and aims to meet growing demand for Haribo's popular products.
Key Takeaways
- Haribo plans to invest €300 million in a new factory in Neuss, Germany.
- The new facility will replace an existing one and will be twice as large.
- Construction is expected to start in 2025, with production commencing in 2028.
- The investment will create 100 new jobs, adding to the current 350 employees in Neuss.
- Haribo aims to stay local, despite high labor and energy costs in Germany.
Investment Details
Haribo is set to invest €300 million in a new factory in Neuss, Germany. The new facility will be built on a 14-hectare site and will replace an existing factory in the area. The new plant will be twice as large as the current one, which cannot be expanded at its present location.
Timeline and Job Creation
Construction of the new factory is expected to begin in 2025, with production slated to start in 2028. The investment will create 100 new jobs, adding to the current 350 employees already working in Neuss.
Strategic Location
Staying local was a priority for Haribo when deciding on the location of the new factory. The company was founded in Bonn, which is just an hour's drive from Neuss. Additionally, Maoam, a sweet produced by Haribo, originated in Düsseldorf, located just across the River Rhine from Neuss.
Economic Context
Despite high labor and energy costs, Haribo believes it is still possible to produce competitively in Germany. The investment comes at a time when the German economy is showing slow signs of recovery. An index of German business sentiment released by the Ifo institute indicated that companies' morale remained constant in May. While the industry, trade, and construction sectors are showing signs of recovery, service providers are facing setbacks.
Challenges and Opportunities
Germany's GDP declined by 0.2% last year, partly due to elevated fuel costs triggered by Russia's invasion of Ukraine. Businesses have been lobbying for a reduction in red tape to boost productivity. Despite these challenges, Haribo's significant investment in the new factory demonstrates confidence in the local economy and its potential for growth.
Conclusion
Haribo's €300 million investment in a new factory in Neuss is a strategic move to meet growing demand and stay competitive in the market. The new facility will not only increase production capacity but also create new jobs, contributing to the local economy. This investment underscores Haribo's commitment to its roots and its belief in the potential of the German market.