Cargill has announced its intention to purchase an industrial chocolate facility -- Schierstedter Schokoladefabrik GmbH & Co. KG (SSF) -- from its existing customer, Ludwig Schokolade GmbH & Co. KG. The deal is subject to German regulatory approval and is expected to be completed by the summer.

The facility is situated in Klein Schierstedt in eastern Germany and will become part of Cargill's chocolate business in Europe.

"This announcement marks the latest step in Cargill's strategy to become a leader in providing value-added, customer-focused solutions and will complement the company's existing chocolate offering to customers worldwide. By buying the facility Cargill will strengthen its position in the German industrial chocolate market and gain access to customers in central and eastern Europe," comments William Shaughnessy, head of Cargill's chocolate business in Europe.

Today's announcement comes 16 months after Cargill's first significant investment in chocolate manufacturing in Europe with the purchase of OCG Cacao SA. Cargill now has chocolate facilities in France, Belgium and the UK.

Source: Company Release