Mondelez International has entered into an agreement with business-to-business chocolate supplier Barry Callebaut that includes the transfer of its production facility in Halle, Belgium. 

In an announcement this morning (15 September), Barry Callebaut said that it will acquire and integrate the chocolate facility in Halle into its existing network. 

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The companies also entered into a long-term agreement for the supply of an additional 30,000 tonnes per annum of liquid chocolate to Mondelez. Under a toll-manufacturing agreement, Barry Callebaut would make certain consumer products for Mondelez International that are currently produced at the chocolate plant in Halle.

Financial details of the transaction were not disclosed. However, MainFirst analyst Alain Oberhuber said “is within the guided CHF200m annual capex” for Barry Callebaut. 

Representatives for Mondelez International were not immediately available for comment. Barry Callebaut said that the move would strengthen its capacity in the “rapidly growing field” of quality Belgian chocolate. 

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CEO Antoine de Saint-Affrique said: “This is an excellent opportunity for Barry Callebaut to strengthen our global strategic supply partnership with Mondelez International. As a result, we would also be able to expand our manufacturing capacity for quality Belgian chocolate needed to support the continuous growth of our business with both Food Manufacturers and Gourmet & Specialties customers. This all demonstrates our continued commitment to Belgium and reflects the excellent reputation that Belgian chocolate enjoys globally.”

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The expected closing of the transaction is by the end of December 2016, after completing works council consultation. The transaction is subject to closing conditions.