Susan Gordon, Business Reporter

The Jamaica Producers Group (JP) is investing US$2 million (J$136 million) in a snack factory under construction in the Dominican Republic, which will target markets across Latin America.

The investment is a joint venture with the Cana Group, a banana farming company which operates in the Dominican Republic.

David Martin, general manager of JP Foods, said the US$2 million was an "initial" investment in the business.

The factory being built on eight hectares or approximately 20 acres of land owned by the Cana Group, will have a capacity of 5,000 cases of snacks per week or 50 per cent less than JP's St. Mary factory which was expanded last year at $70 million.

"We broke ground in December," Martin told the Financial Gleaner after a brief interview following the company's annual general meeting at JP's corporate headquarters in New Kingston.

He said they are now in the process of shipping machinery to the 35,000-square foot factory.

"The machine's capacity will be half the size of the one in St. Mary, which can do 10,000 cases per week," said Martin.

The Dom Rep factory should be completed by August, with plans to have the products on the market a month later.

Cana's contribution of land and capital gives it a 50 per cent stake in the business, with JP having the other 50 per cent.

At the AGM, the company said its tropical snacks division was one of five areas targeted for growth.

The new factory will initially produce banana chips, cassava chips and plantain chips for export, as well as inputs for production of snacks in Jamaica.

Martin said the snacks would not necessarily be sold under the same local brands.

susan.gordon@gleanerjm.com