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Kervan USA Invests $20 Million in New Manufacturing Facility

Kervan USA's new manufacturing facility in the Lehigh Valley is under construction, set to boost local employment and production.

News Summary

Kervan USA, a Turkish candy manufacturer, is expanding its operations by investing $20 million to build a new manufacturing facility in the Lehigh Valley, Pennsylvania. This initiative will create around 40 new jobs, contributing to the local economy while allowing Kervan to consolidate operations from New Jersey and Whitehall Township. The facility, expected to start operations next year, aims to enhance Kervan’s production capabilities in a region known for its robust food and beverage industry.

Pennsylvania – Kervan USA, a Turkish candy manufacturer, has announced a significant expansion by investing $20 million to establish a new manufacturing facility in the Lehigh Valley. This project is anticipated to create approximately 40 new jobs, increasing Kervan USA’s total workforce in the area to about 50 employees, as the company consolidates operations from Whitehall Township, Pennsylvania, and New Jersey.

The new manufacturing facility will cover about 90,000 square feet and will be located in Lower Nazareth and Bethlehem townships. Groundbreaking for the site occurred on June 26, and the facility is expected to commence operations next year. Initially, Kervan USA will import its products for packaging at the new site. However, full-scale manufacturing is projected to begin within a few years.

The strategic decision to establish the new hub in the Lehigh Valley was influenced by the region’s expanding population and its proximity to East Coast ports. The Lehigh Valley is within a day’s drive of roughly one-third of the U.S. population, offering Kervan USA advantageous access to key markets and resources.

Current Operations and Future Plans

At present, Kervan USA employs a small team of 10 at its nearby headquarters. The company specializes in producing over 200 varieties of candy under its Bebeto and Yumy Yumy brands, which are distributed in Turkey, Egypt, and Poland. Notably, Kervan also produces candies branded for Crayola, which has a historical presence in the Lehigh Valley, further enhancing the region’s reputation as a hub for food and beverage production.

As part of its growth strategy, Kervan USA’s Chief Financial Officer addressed the unique opportunities the Lehigh Valley presents, particularly pertaining to workforce development and logistical advantages related to port access. Major retailers such as Walmart, Dollar Tree, Dollar General, and Trader Joe’s sell Kervan’s products, indicating a strong market presence.

Industry Context

The Lehigh Valley has witnessed substantial growth in the food and beverage sector over the past decade, with employment in this field increasing by over 50%. There are now approximately 7,100 jobs in food and beverage roles within the region, showcasing a robust industry environment that can support Kervan’s expansion.

The design of Kervan’s new facility was carried out by Alloy5, while Forge39 Construction is responsible for the construction of the building. Local incentives and comparatively lower operational costs in Pennsylvania, as opposed to New Jersey, played a significant role in Kervan’s decision to relocate its operations to the Lehigh Valley.

Conclusion

As Kervan USA sets out to make its mark in eastern Pennsylvania, the investment in the new candy manufacturing facility signifies a commitment to growth and innovation in the region’s food production industry. With the planned expansion expected to benefit local employment opportunities and bolster the sector’s economic contributions, Kervan USA’s venture is one of promising potential for both the company and the Lehigh Valley.