PHOTO
MANAMA: Arla Foods, a Denmark-based international dairy co-operative, plans to invest around $55 million in its new cheese factory in Bahrain.
The company will also create more than 100 direct jobs over the next two to three years as it makes the kingdom its main manufacturing hub to support the increasing demands for dairy in the Middle East and North Africa (Mena).
The announcement, during the facility’s inauguration in Hidd yesterday, comes just five months after Arla’s acquisition of Mondelez’ Kraft-branded cheese business in Middle East and Africa (MEA).
The inauguration ceremony was held under the patronage of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander and First Deputy Premier, and was attended by Industry, Commerce and Tourism Minister Zayed Alzayani, Arla’s chief executive Peder Tuborgh, international executive vice-president Tim Jorgensen, supply chain executive vice-president Sami Naffakh and employees.
HRH the Crown Prince deputised Shaikh Isa bin Salman Al Khalifa, chairman of the board of trustees of Isa bin Salman Educational Charitable Trust, to preside over the inauguration in his absence.
The majority of Arla’s products sold in the region will now be produced locally at the site in Manama, which will enable the company to further expand its branded cheese production and improve overall efficiency in its supply chain.
Speaking during the event, Mr Alzayani said, “We are delighted to welcome Arla to be part of Bahrain’s manufacturing landscape. As a vital member of Team Bahrain, the ministry will continue to play its role in attracting FDI, facilitating business and supporting growth in line with economic diversification plans.”
By 2025, Arla expects to increase annual production in Bahrain to more than 100,000 tonnes under Puck, Arla, Dano, Kraft and private label brands.
The factory currently produces around 16,000 tonnes per year and includes an on-site innovation pilot plant.
By moving the production of processed cheese and sterilised cream to this site, Arla expects to improve the shelf-life of these products by up to six weeks as transport and distribution are reduced significantly.
Product categories produced in Bahrain will be sold primarily in the Middle East as well as US, West Africa and Southeast Asia.
Khalid Humaidan, the chief executive of the Economic Development Board (EDB), the national investment promotion agency, said: “Arla is the latest in a long line of international manufacturing companies to make Bahrain a home for their regional operations. Today’s inauguration of Arla’s largest facility outside Europe is testament to Bahrain’s position as a leading destination for manufacturing companies looking to access the region’s $1.5 trillion market. The kingdom offers investors a number of competitive advantages, including the availability of a highly skilled local work force and highly-competitive operating costs.”
“Arla is a great addition to our manufacturing sector, where now accounts for over 14 per cent of Bahrain’s GDP, the second largest non-oil sector. The investment will create a number of jobs in the local market and will play a key role in supporting our diversification efforts, in line with Vision 2030,” added Mr Humaidan.
Arla Foods is an international dairy company owned by 9,900 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands.
According to Mr Tuborgh, the inauguration of the production site in Bahrain consolidates the company’s commitment to the region as a “priority market”.
“Our decision to make Bahrain the Mena region manufacturing hub demonstrates our confidence in the kingdom’s rapidly-growing manufacturing sector,” he added.
Since 2010, Arla has more than doubled its sales organically across the Mena region, which is the company’s largest commercial area outside Europe, through strong positions in cheese under the Puck brand, butter and spreads under the Lurpak brand as well as milk powder and UHT milk under the Dano and Arla brands.
“Dairy is an integral part of a healthy diet and this new facility will enable us to increase production and step change our innovation speed to meet increasing consumer demand. We are confident that Bahrain will be instrumental to the success of Arla’s growth plans,” said Mr Tuborgh.
In 2018, Arla’s retail and food service revenue in the Mena region was around $623m.
© Copyright 2019 www.gdnonline.com
Copyright 2019 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
