Japanese maker of HI-CHEW candy to build second Mebane factory, pledging 204 new jobs

The Japanese maker of a popular fruity candy plans to expand its existing operations in Mebane, adding 204 jobs on the Orange County side of the Piedmont city.

Morinaga & Co. announced Tuesday it will invest around $136 million into a second factory alongside the first site it opened in 2016. Together, the facilities will exclusively produce HI-CHEW, a small, individually wrapped chewy candy comparable to Starburst or taffy. Morinaga introduced HI-CHEW to American consumers 15 years ago, and the company says its U.S. sales have risen 20% annually since 2018.

Construction is scheduled to begin in October, with operations to start in early 2027. The second factory will include 100,000 square feet of manufacturing space, around the same size of the first plant. For its initial Mebane site, Morinaga entered an economic incentive agreement with Orange County to invest $48 million and hire around 90 employees. As of June 2022, the company told county officials the plant had approximately 230 workers.

Mebane is a fast-growing city of around 20,000 split between Alamance and Orange counties. Its population has risen from 11,400 residents in 2010, U.S. Census Bureau data shows. On Tuesday, Orange, state, and company leaders gathered in Hillsborough to celebrate the latest development news.

“The important thing and the bottom line is these jobs will create family-sustaining income for families in North Carolina and across the state,” N.C. Commerce Secretary Machelle Baker Sanders said.

The state awarded Morinaga a $100,000 grant through the One North Carolina Fund to fund its expansion. The North Carolina Community College System will also support the training of workers. Orange County officials will convene in the fall to discuss potential local incentives for the project.

Morinaga is the latest Japanese company to extend its footprint in North Carolina. In April, Fujifilm pledged 680 more jobs and another $1.2 billion for an incoming Wake County plant, while Toyota last fall announced an additional $8 billion investment at its battery site south of Greensboro.

Dai Nippon Printing and Kyowa Kirin are among the other Japanese companies to promise new North Carolina investments in the past 12 months. This spring, Japanese Prime Minister Fumio Kishida made a rare official visit to North Carolina, where he was hosted by Gov. Roy Cooper.

Japanese companies are now the top source of foreign direct investment in the state, Sanders said.

“Over the past few years, we have had and seen unprecedented growth from our Japanese business partner, and is deeply satisfying to see such strong collaboration and friendship between the two countries,” she said.

Speaking after the announcement, Orange County Commissioner Anna Richards discussed the steps Mebane is taking to accommodate the jobs and people coming to the area.

“There’s new housing developments in that part of Orange County, and we’re looking at and taking into account what it means for schools and the community,” she said.

She added she’s never eaten a HI-CHEW before but would grab one of the free samples at the event on her way out.

Tammy Grubb contributed reporting.