Nestlé establishes its first food manufacturing plant in Saudi Arabia
17 Sep 2024 --- Nestlé agrees plans for its first food manufacturing plant in Saudi Arabia with investment from the Saudi Authority for Industrial Cities and Technology Zones (Modon). The project aims in its initial stages to produce children’s food and launch an automated production line with modern technologies for packaging and filling materials operated by highly skilled and qualified national personnel.
The 270 million SAR (US$72 million) investment is intended to boost local food production. The agreement, signed on September 15, 2024, in Riyadh, allocates a 117,000 SQM plot in Jeddah city’s Third Industrial City for the facility.
The project is expected to create hundreds of direct and indirect jobs. The factory consists of a central warehouse, a building for industrial services and facilities, an advanced laboratory and an administrative building. The targeted production capacity in the first phase is 15,000 metric tons annually.
Food security boost
The project also seeks to support sustainable food security in the Kingdom.
Aligned with the National Industrial Strategy, Modon aims to bolster the food sector by developing food industry clusters in Jeddah’s Second and Third Industrial Cities. These clusters are designed to reinforce supply chains and boost exports by creating a comprehensive and supportive ecosystem.
The factory will aim to meet local demand for its products within Saudi Arabia while also exporting to other Middle Eastern and North African markets.
Nestlé Saudi Arabia was the first company to directly sell and distribute Nestlé Food & Beverage products in the Kingdom of Saudi Arabia in 2011. The Swiss multinational has invested SAR 7 billion (US$1.87 billion) as per the Memorandum of Agreement signed with the Saudi Ministry of Investment in 2022.
Saudi Arabia is a leading market for Nestlé in the Middle East and North Africa, a region encompassing 24 company factories in 19 countries.
The signing ceremony was attended by His Excellency Mr. Bandar bin Ibrahim Al-Khorayef, Minister of Industry and Mineral Resources and Chairman of Modon. Also in attendance was Eng. Majed bin Rafed Al-Argoubi, CEO of Modon, and Robert Helou, CEO of Nestlé Saudi Arabia.
