PepsiCo, Inc. PEP is reportedly building a snack factory in Indonesia's West Java, returning to the country after cutting ties with a local partner two years ago.
The development is part of PepsiCo's $200 million commitment to invest in Indonesia over ten years, Reuters reported.
The new factory will source most raw materials for its snacks, including corn and palm oil, from sustainable sources, using renewable power sources, the report noted.
Also Read: Morgan Stanley Downgrades PepsiCo Rating Following Q2 Performance: Why Topline Upside Is Now Limited
The company is expected to start producing snacks at the factory by 2025, the report added.
In 2021, PepsiCo's unit Fritolay Netherlands Holding B.V. and Indofood CBP terminated a 30-year-long JV, which manufactured a range of snacks under brands like Lay's, Cheetos and Doritos.
Price Action: PEP shares are trading higher by 011% to $180.02 premarket on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
