Kuala Lumpur / MY. (gcb) Guan Chong Berhad, the fourth largest cocoa grinder in the world, is buying Schokinag Schokolade Industrie GmbH based in Germany, expanding its downstream business in Europe following a recent venture in Africa. Guan Chong will pay 138 million MYR (29,9 million EUR). «Schokinag will require approximately 40 to 50 percent of the supply of cocoa ingredients from our upcoming cocoa processing plant in Cote D’Ivoire,» managing director and CEO Brandon Tay Hoe Lian said in the company’s statement. «This ensures that our incoming new cocoa grinding capacity will be met with immediate demand».
In August, Guan Chong announced an investment of 280 million MYR (61 million EUR) over 18 months to set up a cocoa processing plant in Cote D’Ivoire. The new plant will increase Guan Chong’s production capacity by 60,000 metric tonnes per annum by the first quarter of 2021.
Guan Chong currently has a combined grinding capacity of 250,000 metric tons per annum, with 130,000 metric tons from its two factories in Pasir Gudang, Johor, and another 120,000 metric tons from its plant in Batam, Indonesia. Schokinag’s industrial chocolate plant has an annual capacity of 90,000 metric tons, while its cocoa processing plant can grind 7,000 metric tons of cocoa beans into cocoa mass per year. «The acquisition of Schokinag certainly sets us strategically to target new growth opportunities in the world’s largest chocolate consuming market,» CEO Brandon Tay Hoe Lian said. «The latest move is ideal as we aim not just to enlarge our global client base, but also expand our range of value-added downstream industrial chocolate products to supply to major chocolate players.»
History of Schokinag Holding GmbH
1923 | Schokinag is founded.
1945 | Rebuilding of factory (destroyed in World War II).
1959 | First liquid delivery.
1978 | Grandson Hans-Joachim Herrmann takes control of the company.
1990 | Production capacity of chocolate doubled.
1991 | Creation of Schokinag North America.
1993 | Large investment. New chips + chunks line.
1997 | Creation of Schokinag UK.
2000 | Large investment. New cocoa processing facility.
2006 | Creation of Schokinag Chocolate Belgium.
2009 | Take over by ADM Archer Daniels Midland.
2015 | Chocolate production sold to Cargill.
2016 | Take over by 2 Dutch financial investors.
2020 | Take over by Malaysia’s Guan Chong Berhad.