Nestle to build first food factory in Saudi Arabia with $72M investment
The Swiss food and beverage firm is investing an initial 270 million riyals in the project, according to the Saudi Press Agency.
Swiss food and beverage giant Nestle will build its first food factory in Saudi Arabia, according to a report published on Sept. 15.
Slated to open in 2025, the new 117,000-square-meter site will be in Jeddah’s Third Industrial City.
Nestle is investing an initial 270 million riyals ($72 million) in the project, according to the Saudi Press Agency.
The deal was announced at a signing ceremony in the port city, which was attended by Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef, who is also chairman of the Saudi Authority for Industrial Cities and Technology Zones (MODON), SPA reported.
MODON CEO Majed Al-Argoubi and Nestle CEO Robert Helou also attended the signing, according to SPA.
The initial production target for the facility will be 15,000 metric tons a year. The factory will focus on producing food for children and have an automated production line with advanced packaging and filling technology operated by local workers.
Nestle is looking to expand its footprint in the Middle East, while the kingdom is looking to bolster its supply chains.
However, Saudi Arabia is not a new market for the food and drink company, as it has been selling to the kingdom since 2001.
Saudi Arabia is the leading market for Nestle in the Middle East and North Africa, where the company has 25 factories in 19 countries.
The Nestle portfolio in Saudi Arabia includes brands in dairy, infant nutrition, coffee and creamers, confectionery, bottled water, breakfast cereals and pet care, among others.
In late 2022, Nestle said it would invest 7 billion riyals in Saudi Arabia over 10 years, including in the building of a manufacturing site.
