Arla move processed cheese operations to Saudi Arabia
The move, which is aimed at doubling sales to the Middle East will result in the loss of 60-70 jobs at Bislev Dairy.
21/02/05 Arla Foods is transferring the production of processed cheese will be transferred from Bislev Dairy in Northern Jutland, Denmark, to Saudi Arabia. The move, which is aimed at doubling sales to the Middle East will result in the loss of 60-70 jobs at Bislev Dairy.
The move is said to be part of Arla Foods’ wish to expand and maintain its position as market leader in the Middle East within cheese, butter and cream. The aim is to increase sales from the current 60,000 tons per year to 120,000 tons by 2010.
The company stated that a cost-benefit analysis of the consequences of relocating the production of processed cheese to Arla’s Saudi dairy, Danya, in Riyadh, shows substantial advantages.
Arla’s sales in the region currently total approximately DKK 2.5 billion. ”Middle Eastern consumers are increasingly demanding fresh, locally produced products,” said Executive Director, Finn Hansen, the Overseas Division. “The intention is for new products produced in the Middle East to account for 20% of our turnover there.”
