Croatia-based confectionery producer Kandit has launched production at a new chocolate factory in Osijek after a 73 million kuna (9.97 million Euros) investment.

Officials said 30 products, including seven new lines, will be produced at the Kandit II plant.

The 7,000-square metre factory has a capacity of 3,800 tonnes of products per year.

Production will continue at an older Kandit factory which has a capacity of 6,500 tonnes per year.

The daily "Poslovni dnevnik" reported Kandit sales rose three per cent in the last nine months compared to the same period last year.

Kandit exports 60 per cent of its products, mostly to Hungary and Austria.