Hershey, Lotte Confectionery Will Build In China

Products to be sold in China.

The Hershey Co., and Lotte Confectionery Co., Ltd., a confectionery and ice cream manufacturer based in Korea, announced Jan. 29 they are forming a joint manufacturing venture in China. Products from both companies will be sold in the Chinese market.

The manufacturing facility, located in Jinshan, near Shanghai,is expected to be in operation by 2007.

As part of the agreement, Hershey will provide Lotte with expertise and distribution capabilities in the U.S. Hershey will help test and distribute Lotte's Xylitol gum and a variety of other refreshment products.

Hersey is looking to expand its market in China as well as other Asian markets, including Korea, Japan, Taiwan, the Philippines. "We know our brands appeal to Chinese consumers, and we are taking a significant step in building the supply chain capabilities to bring our products to market. Working with Lotte, we'll be able to produce affordable products in the right flavors and formats for the local Chinese market, as well as regional Asian markets," said J.P. Bilbrey, president International Commercial Group, The Hershey Co.

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