The capital investment will add a new Kit Kat manufacturing line at the plant and will help encourage the growth of the confectionary brand in the US.
Breaking ground on the new expansion, Hershey said that Kit Kat Is “poised to be Hershey Co.’s next $1 billion brands.”
The factory, which currently produces Kit Kat, Cadbury and Caramello products, says that the expansion will create 111 new jobs.
“Kit Kat is one of our most complex bars to produce, and making such a high-quality product starts with a great manufacturing team, like the people here at the Hazleton Plant,” said Plant manager Stephen Knight.
The expansion comes a week after the Hershey Company reported its fourth quarter results for 2017.
The US confectionery giant noted that net income rose to $181mn in 2018, up from $116.0mn in the fourth quarter of 2016.
“In 2017, we continued to strengthen our core chocolate brands, positioned our snacks business for ongoing success and increased adjusted operating profit margin,” said Michele Buck, president and chief executive officer.
“We continue to drive strong growth in our core chocolate brands as Reese’s, Hershey’s, KitKat and Kisses combined retail takeaway was solid, up 2% in the fourth quarter and 5% for the full year.”
Hershey acquired snack brand amplify for $1.6bn in December which Buck says was an important acquisition for the brand
She added: “I am very excited about the acquisition of Amplify as we now have a meaningful presence, with the addition of the SkinnyPop brand, in the fast-growing warehouse salty snack aisle.”