200 Million Reais Will Be Invested in New Mars Factory, Creating 450 Jobs, in Paraná

The New Factory Of The Company Mars, Located In Paraná, Was Intended For The Production Of Feed And Will Generate About 450 Jobs

Located in the city of Ponta Grossa, Paraná, the new Mars factory, which is the company’s fourth unit, will receive more investments, generating new jobs. Owner of brands such as Pedigree, Whiskas, and Cesar, the food company stated it will invest R$ 200 million for the installation of machinery and automation systems at the new unit in Paraná, which will be dedicated to the production of wet food for dogs and cats.

Mars had already invested R$ 165 million in the construction of the factory building in Paraná. The expected delivery of the factory and the generation of jobs is for the first quarter of 2024, and the news was announced in the newspaper Valor Econômico on Thursday, the 1st.

With over 14,500 m² built and expected to reach 25,000 m² in the next six years, the Mars factory in Paraná will increase the company’s production capacity, which currently has units in Recife (PE), Mogi Mirim (SP), and Descalvado (SP). The food company also has a factory dedicated to snacks and chocolates, such as those of the brands Twix and M&M’s, in Guararema (SP), which has also been responsible for generating several jobs in the region.

Factory Location Was Chosen for Proximity

Ponta Grossa, in Paraná, was chosen by Mars due to the proximity of raw material suppliers and major distribution routes. In total, 150 direct jobs will be distributed at the start of the operation and 300 jobs in five years. In the first phase, the new factory in Paraná will supply the national market, mainly the Southern region, which represents 20% of the Brazilian pet market. Additionally, the new factory will export its products to countries in South America. Exports in the sector grew 33% in 2021, totaling US$ 412.5 million, with 95% being pet food.

Mars has two strengths, according to Euromonitor. They are: Pedigree, which holds 11.5% of the pet food market, and Whiskas, which has 5.4%, respectively. Besides these two, the new factory will produce wet food for the brands Cesar, Sheba, Optimum, and Kiteekat, and will also generate jobs in all its operational phases.

“For Mars, the pouch category is large and important enough for us to announce a new factory focused exclusively on it,” says João Konstantinidis, manufacturing director of Mars Petcare. The wet food comes in the pouch, ready to be consumed. Being a private company, Mars does not disclose revenue, nor the share of wet food in sales, only informing about its new investments and job generation.

The scenario in the production of food for dogs and cats has been growing and also receiving investments from other companies. This year, in June, PremierPet, owner of the brands Golden and Premier, opened its fourth factory, initially dedicated to dry food, investing R$ 1.1 billion and also generating jobs at the factory.

Even though the factory in Paraná has the potential to market 8.3 million tons, due to the size of the dog and cat population in Brazil, the current market is around 3.7 million, according to the Brazilian Pet Products Industry Association (Abinpet). The planning is for the volume of food sold to increase approximately 6.6% in 2022. Last year, only the food segment accounted for 78% of the sector’s revenue, which was R$ 35.8 billion.