Zurich, Switzerland — Barry Callebaut AG has signed a deal with Industria de Alimentos Dos en Uno S.A., owned by Argentinian confectionery manufacturer Arcor, to supply the company with liquid compound and chocolate products. Neither company revealed the financial terms of the deal.

The agreement will involve Barry Callebaut building a $14 million facility in Santiago, Chile, which will be capable of producing 20,000 metric tons of supplies per year. The plant is planned to open in early 2014, the company says, and deliveries to Arcor will begin shortly after.

Juergen Steinemann, CEO of Barry Callebaut, says: “This is a very important milestone as it is our first long-term outsourcing agreement in South America, which will support Barry Callebaut's business expansion in the region. With our new factory in Santiago de Chile, we continue to expand our manufacturing footprint in South America, in order to tap the region's promising growth potential.”