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Nestle announces $136m Dubai factory project
Jun 27, 2012
Nestlé, the world's biggest food manufacturer, is to build a new factory in Dubai, a statement from the planning and investment arm of the Dubai government, Dubai World Central, has revealed.
The Swiss company signed a partnership agreement with Dubai World Central (DWC) for a 175,000m² plot which will see an initial investment of over $136m (AED 500m) by Nestlé for the nutrition, culinary and coffee products manufacturing facility.
The new facilities are expected to generate up to 800 additional jobs, according to Nestlé, and will complement DWC’s commitment to reflecting the government strategy of Dubai and UAE in terms of economic and social development.
DWC has already attracted a number of global companies including Aramex, Ehrhardt and Partner Solutions, Kuehne and Nagel, Schaefer Systems International, Panalpina, Hellmann Caliper, INL and RSA Logistics.
HH Sheikh Ahmed said, “DWC offers strategic advantages that make it an ideal and attractive destination for leading multinationals. It is an important component in Dubai’s vision to provide a comprehensive platform that caters to the needs of aviation, air transport, commercial and logistics businesses.
“This partnership with Nestlé reaffirms DWC’s role as a catalyst for growth and a new gateway for long-term economic and social development in Dubai and across the region,” he added.
Yves Manghardt, chairman and CEO Nestlé Middle East, said, “Nestlé is committed to strengthening our presence in the Middle East markets. We will continue to invest in projects that enable us to better serve consumers in the region, while leveraging the strategic advantages of DWC and the UAE in general as a distribution and manufacturing base.”
Hans Juergen Jung, technical director at Nestlé, added, “Producing locally allows us to bring products faster and therefore fresher to consumers. This is a clear advantage we already experience with our many manufacturing plants in the Middle East.
“The construction of a new facility at Dubai World Central strengthens our local manufacturing capabilities, giving us more flexibility in adopting our products to local consumer preferences and using local and regional raw materials.
“This second production facility in Dubai will also open opportunities to gain synergies in our warehousing and logistics to serve the whole Middle East Region,” said Jung.