After nearly ten years of successful operations in western Orange County, Morinaga & Co. will expand its American production system of candy with a new facility at the same site.
Morinaga America Foods, Inc. made the announcement with North Carolina Department of Commerce, Orange County and the City of Mebane leaders on Tuesday morning, holding a ceremony and press availability at the Whitted Building in Hillsborough. The Japanese-based company is investing around $136 million into a new factory for its HI-CHEW candy, which will be attached to its current plant that manufactures the fruity chews for the United States market. The 40,000+ square-foot expansion will add an estimated 204 jobs to the county.
Masaki Matsumoto, the senior executive officer and general manager of the Overseas Business Division for Morinaga Japan, said at the event Morinaga plans to begin construction in October while aiming to complete the new facility in mid-2026 and begin operation in January 2027. He said he feels very grateful to North Carolina and the local governments for their support during their decade-long relationship — which was highlighted during the COVID-19 pandemic.
“The members of Morinaga American Foods worked hard without significant suspension,” he said, “and while they are [a good] workforce, the local government helps us. Whenever we face some trouble, some problem, always the local government supports us.
“We are inspired to become a company which will continue to grow for 100 years in North Carolina,” Matsumoto concluded.
Masaki Matsumoto, Senior Executive Officer and General Manager of the Overseas Business Division for Morinaga Japan, speaks during Tuesday’s announcement of Morinaga’s expansion in Orange County.
Morinaga, whose company roots date back to the 19th century, first established its American operations in Mebane in 2013. At the time, the candy-maker invested $48 million into the facility and received a $1 million incentives-based grant from the county. The plant — located off Interstates 40/85 in the Buckhorn Economic Development District — produces more than 7 million pieces of HI-CHEW every 24 hours, and the addition will allow Morinaga to double that output to keep up with the demand for the candy and new flavors.
Sally Greene, the vice chair of the Orange County Board of Commissioners, said the county government is also grateful for Morinaga’s investment and belief in the community and its workforce. Beyond adding above-living wage jobs and furthering the public-private relationship, she added that the expansion will continue to diversify Orange County’s tax base and go to benefit local schools and services.
While Greene was not on the board of commissioners when North Carolina and Orange County first recruited Morinaga to the area, she said the dividends for having the Japanese manufacturer be a “foundational” piece of the Buckhorn Economic Development District are clear.
“I do think that it inspired or helped solidify the decisions made by ABB to expand, Medline to come in,” Greene told Chapelboro. “I think it really is helping to put Orange County on the map as a place where you can invest in this type of large-scale, good-paying jobs.”
The vice chair also pointed to Orange County’s ongoing quarter-cent sales tax as continuing benefit such economic development partnerships, thanking the voting residents for their continued support of the measure. For each cent spent on retail sales, a quarter of it goes to a fund to help pay for major development efforts — including extending the water and sewer utilities needed for Morinaga in 2013.
“When that fund was established, those commissioners made a decision to split that fund in half,” Greene said. “Half of it actually goes to the school districts to support technology — and then the other half is for all kinds of business, development-related causes. It’s a good kind of cash flow we have to count on.”
Morinaga’s expansion is just the latest example of North Carolina and Japan connecting over business. Secretary of North Carolina’s Department of Commerce Machelle Baker Sanders said Japan is the top source of direct foreign investment in North Carolina, and it shows when looking at the statewide business community.
“More than 30,000 North Carolinians go to work every day at a Japanese-owned company,” said Sanders. “Over 225 Japanese-owned companies operate in North Carolina, at approximately 550 individual locations across the state.
“This morning,” she added, “we strengthen that partnership once again.”
A close-up of HI-CHEW candies, which are produced in Mebane at Morinaga’s U.S. operations base.
In its materials about the expansion, Morinaga said the investment reflects the rising U.S. interest in HI-CHEW candies. While the company began making caramel and chocolate-covered biscuits for Japanese consumers in the early 1900s, it introduced HI-CHEW in 1975 and the chewy candy quickly became a featured product. Since establishing its footprint in the U.S., Morinaga said it has surpassed 19 billion Japanese yen (or more than $119 million) in net sales from American customers. Additionally, HI-CHEW has consistently seen a 20 percent year-over-year growth since 2018 in the U.S.
The announcement event also featured Orange County and North Carolina each giving Matsumoto and Morinaga a gift, with both presenting special pieces of pottery from North Carolina.
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