The investment will be rolled out over a three-year period with construction set to begin in 2019, and the factory will initially create around 20 new jobs.
Nigay has about 450 references of caramels in liquid, paste, powder form in its portfolio that are manufactured in its historic factory in Feurs. This second site, to be located in the Hauts de France area, will initially be dedicated to manufacturing standard caramels only, head of communication and marketing Coraline Brosse said.
This location is in the heartland of France’s sugar production and transformation, with Nigay’s caramels manufactured from beet-extracted sucrose as well as glucose syrup from wheat and maize starch.
Its proximity to the English Channel and North Sea ports give an added strategic advantage, the firm said, which will be further strengthened by the construction of the North Seine Canal, currently underway, that will run 107 km between the French towns of Compiègne and Aubencheul-au-Bac.
Nigay has a turnover of just under €60m, 62% of which is generated through exports around the world.
The privately-owned firm supplies caramels for use in soft drinks, ice creams, chocolates, dairy products, alcohols and beers, bakery, soups, sauces and pet food.
The company’s president, Henri Nigay, and its CEO, Yves Nigay, issued a joint statement saying they would strive to make the plant as energy efficient and environmentally friendly as possible, with the aim of obtaining the following certifications: ISO 9001 (Quality Management), ISO 14001 (Environment), ISO 50001 (Energy), FSSC 22000 (Food Safety), OHSAS 18001 (People Safety).