Arla Foods expands local production capacity driving 40% growth of its production in Saudi Arabia,
gulftech, Riyadh, KSA: Arla Foods, the leading global dairy company responsible for brands such as, Puck®, Lurpak®, The Three Cows®, Starbucks® ready to drink and Kraft® in Saudi Arabia, has expanded its local production capacity, resulting in a 40% increase in local production across the Kingdom. The expansion was marked by an inaugural ceremony in the presenceof H.E. Mr. Adnan AlSharqi, Deputy of Integrated Investors Services at the Ministry of Investment, H.E. Mr. Mohammad Alsuwailem, Undersecretary for Industrial Services, Ambassador Ole Emil Moesby of Denmark as well as Global Chief Executive Officer at Arla, Mr. Peder Tuborgh.
Combining international expertise with local insight, Arla is contributing to Saudi Arabia’s roadmap to transform the Kingdom into a leading industrial powerhouse – effectively supporting the ambitions of the National Industrial Development and Logistics Program. Arla has invested SAR 64 million in three new production lines: Starbucks® ready to drink products, Puck® Sauces, Soups and Cooking Cream products, and, most recently, certified organic milk. Leveraging the latest automation and innovative technology, Arla has diversified its product mix, enhanced delivery time and increasing access to the farthest regions of Saudi Arabia.
Global Chief Executive Officer, Arla Foods, Peder Tuborgh says of the expansion in the Kingdom of Saudi Arabia: “Saudi Arabia is one of the leading markets for affordable and nutritious dairy products in the region and we are delighted to scale up our business here. We are pleased to be growing our presence and footprint in the Kingdom and look forward to fulfilling our pledge to build on Saudi Arabia’s local capabilities and seize the opportunities presented by the ever-growing market.”
Having entered the Saudi market close to four decades ago, Arla has invested a total of SAR 127 million in its Saudi business in the last five years, SAR 106 million of which has been allocated to the development of this production site, which now boasts a robust distribution network extending across 15 depots, serving over 15,000 customers.
Following the inaugural ceremony, HE, the Deputy of MISA for Integrated Investors Services, Mr. Adnan Al Sharqi, said a key tenet of Vision 2030 is raising the development of the private sector, particularly as MISA works relentlessly to attract foreign direct investment into the Kingdom by providing its added values services We are pleased with Arla Foods’ efforts to expand its local production capacity, all whilst expanding their footprint in Saudi Arabia. Throughout our continuous cooperation with Arla Foods as a global investor, knowing about their future expansion plan and after visiting their local production site today; I have witnessed an unrivalled commitment to building on local capabilities, as the global dairy leader continues to contribute to paving the way for an even more competitive economy in the dairy production sector.”
A firm supporter of the ambitions of Vision 2030, Arla is an early adopter of the Saudization programme, having created 500 new jobs with its local production site, a third of which have gone to Saudi talent. In an effort to empower talent, Arla has increased its recruitment of local talent by 8% since 2018 and boasts an entire production line that is fully managed by Saudi women.
Commenting on Arla’s expansion in Saudi Arabia, Ambassador Ole Emil Moesby of Denmark, added, “
Arla has contributed to a thriving environment for the future of dairy in Saudi Arabia, driving healthy, natural, responsible and cooperative growth in the Kingdom. The global dairy leader will continue to expand its production capacity with a view to bolster the growth and diversification of Saudi Arabia’s economy.”
