New cheese plant for Bahrain
Date 10.24.2019 | Category: News
Arla Foods (“Arla”) today inaugurated a state-of-the-art cheese production site in the Kingdom of Bahrain to support the increasing demands for dairy in the Middle East and North Africa (MENA). The company will invest approximately €50 million ($55 million) in the site over the next two to three years to increase capacity as it becomes the key strategic manufacturing hub for the company in MENA. Arla will also create more than 100 direct jobs over the next two to three years in the local market. The opening follows Arla’s acquisition of Mondeléz International’s processed cheese business in the region in May 2019, which also gave it full ownership of the production site.
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. By 2025, Arla expects to increase annual production in Bahrain to more than 100,000 tons under both Puck, Arla, Dano, Kraft and Private Label brands while creating new jobs in the process.
Arla Foods S.P.C today produces approximately 16,000 tons per year and includes an on-site innovation pilot plant. Built in 2008, it has won multiple awards for manufacturing excellence within core cheese categories. By moving the production of processed cheese and sterilized 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 at the site will be sold primarily in the Middle East as well as US, West Africa and Southeast Asia.
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.
In 2018, Arla’s retail and foodservice revenue in the MENA region reached EUR 560 million.Source: Arla FoodsAuthor: Sossna