SAUDI ARABIA – The Saudi Authority for Industrial Cities and Technology Zones (MODON) has signed a contract with Nestlé to establish its first food factory, allocating a 117,000-square-meter industrial plot in the Jeddah Third Industrial City, Saudi Arabia.
This agreement marks a historic milestone for Nestlé, with the project expected to open its doors in 2025.
With an initial investment of SAR 270 million (US$72 million), the factory will focus on producing baby food, signaling a strong commitment to addressing the Kingdom’s growing demand for high-quality, locally produced food items.
The plant will feature an automated production line outfitted with cutting-edge packaging technologies and operated by a workforce comprised largely of qualified Saudi nationals.
The first phase of the project is set to create hundreds of direct and indirect jobs and will boast an annual production capacity of 15,000 tons.
The signing ceremony, held under the patronage of Bandar bin Ibrahim Al-Khorayef, Saudi Minister of Industry and Mineral Resources and Chairman of MODON, was attended by top officials including MODON CEO Eng. Majed Al-Argoubi and Nestlé CEO Robert Helou.
Al-Khorayef emphasized the project’s strategic importance in line with the National Industrial Strategy, a cornerstone of Saudi Arabia’s Vision 2030. This strategy aims to diversify the economy by strengthening the industrial sector, increasing local production, and reducing dependency on imports.
“This partnership with Nestlé not only enhances local food production but also contributes to creating sustainable jobs and supporting innovation in the food industry. It is an example of how we are empowering the private sector to lead in industrial growth and investment,” Al-Khorayef stated.
Nestlé’s new factory will be located within the growing food cluster initiative spearheaded by MODON in Jeddah’s second and third industrial cities.
This initiative is designed to attract food industry leaders, enhance local supply chains, and promote Saudi-made food products in both regional and international markets.
As the world’s largest food and beverage company, Nestlé is poised to bring extensive expertise in innovation, sustainability, and product quality to the Saudi food market.
Nestlé CEO Robert Helou expressed his enthusiasm about the collaboration, highlighting the project’s potential to meet the growing demand for baby food and other essential products in the Kingdom.
“This factory will serve as a blueprint for future investments in the region and is a testament to our commitment to supporting the Kingdom’s goals for economic diversification,” said Helou.
In addition to producing baby food, future phases of the factory are expected to expand production to include other food categories, which will further solidify the Kingdom’s position as a key player in the regional food market.
The factory will also work closely with local suppliers to strengthen Saudi Arabia’s agricultural value chains, ensuring that the benefits of the investment ripple through various sectors of the economy.
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