Mondelez expands in Bahrain

Mondelez International has laid the cornerstone of its new $90 million biscuit plant in Bahrain in a bid to tap into rising demand in the Middle East and Africa for brands such as Oreo, Ritz and Tuc biscuits. Full commercial production is scheduled to start early next year.

“Demand for our biscuits in the Middle East and Africa has been growing at double-digit rates and investing in a state-of-the-art facility in Bahrain will enable us to capitalize on this,” said Daniel Myers, Mondelez international executive vice president, Integrated Supply Chain. “This new investment is part of our journey to reinvent our supply chain around the world to meet growth demands, while also reducing costs and improving productivity.”

Mondelez hopes its supply-chain reinvention plan will deliver $3 billion in gross productivity savings, $1.5 billion in net savings and $1 billion in incremental cash during 2014 to 2016.

The Government of Bahrain has reclaimed the necessary land for construction of the new plant, which will have a total capacity of nearly 90,000 tons per year. The new Bahrain plant will create as many as 300 direct jobs by the end of the initial phase.

In the initial two- to three-year phase, the plant will operate four biscuit-manufacturing lines producing – in addition to Oreo, Ritz and belVita – Prince and TUC biscuits, as well Barni cakes, though the facility is expandable.

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