Since acquiring the manufacturing plant at Manama in the Kingdom of Bahrain in 2019, European dairy cooperative Arla Foods has invested a total of US$63 million (21 million Bahraini Dinars) to increase capacity as part of their long-term plan for the country.

CEO of Arla Foods, Peder Tuborgh, called it a ‘gamechanger for our MENA (Middle East and North Africa) business’ when he announced the acquisition of the production site in 2018. The company’s biggest investment outside of Europe. Immediately after taking over the plant from previous owner Mondelez International, substantial plans for increasing capacity were initiated and the site is now delivering on its full potential.

Yearly production has increased from 20,000 tonnes to approx. 80,000, producing Puck® and Kraft® processed cheese and sterilised cream products with 95 per cent of volumes distributed to the MENA-region.

“We have a growing business in MENA and has as such clearly identified it as one of our core markets in our latest five year strategy, Future26. Bahrain and the site in Manama play a key role in our plans and it’s with great pleasure that we now see the site running at full capacity and delivering on its potential. A massive thank you to the team on the ground and the many partners involved in this project that made this possible,” says CEO of Arla Foods, Peder Tuborgh.

Site expansion drives local impact

With the completion of the site in Manama, Arla Foods has moved parts of its production to Bahrain with subsequent benefits of improved product shelf-life, minimised costs for transportation and product development from the on-site pilot plant. But the investment does not only benefit Arla Foods.

Contributing positively to the local development has been a key focus area throughout the process and as a result of the investment 200 direct jobs and approx. the same number of indirect jobs have been created.

“This project is a great example of strong cooperation by everyone involved and working closely together with local partners, including Ministry of Industry, Commerce and Tourism and the Economic Development Board has played an integral part in making it a reality. We are grateful for the welcoming nature of the Bahraini people and are excited about what the future brings for Arla Foods in Bahrain,” says Peder Tuborgh.

Investing in a greener future

The latest update to the site in Manama includes a US$1.3 million investment in green energy with 8,000 square metres of solar cells making it one of the biggest solar power plants in Bahrain. This renewable energy source has a capacity of 1,7 megawatt and produces approx. 20 per cent of the sites yearly energy consumption while also reducing its overall CO2e impact by 1,600 tonnes per year.

-Ends-