In a significant move to boost local food production, F&B giant Nestlé has signed an agreement with Saudi Authority for Industrial Cities and Technology Zones (MODON) to establish its first food manufacturing plant in the Kingdom with an investment of 270 million riyals ($71.95 million). The new facility, covering 117,000 square metres, will be located in Jeddah Third Industrial City.
The agreement was signed on 15 September, 2024, between Majed Al-Argoubi, CEO, MODON, and Robert Helou, Managing Director, Nestlé Saudi Arabia. The deal was formalized in the presence of Bandar Ibrahim Alkhorayef, Saudi Minister of Industry and Mineral Resources and Chairman of The Board, MODON.
With an initial production target of 15,000 tonnes per annum, the factory will focus in its first phase on producing Nestlé infant formula and will feature an automated production line with state-of-the-art packaging and filling technologies operated by local professionals. The factory will also include a central warehouse, a building for industrial services and facilities, an advanced laboratory, and an administrative building.
The project seeks to achieve sustainable food security in the Kingdom, and enhance production capabilities to meet local demand while enabling exports to other Middle Eastern and North African countries. Moreover the project will create hundreds of direct and indirect jobs. “We are committed to boosting local food production, enhancing food security, and creating hundreds of jobs for skilled professionals in Saudi Arabia,” says Helou.
Aligned with the Kingdom’s National Industrial Strategy, MODON is bolstering the food sector by developing food industry clusters in Jeddah’s Second and Third Industrial Cities that are designed to reinforce supply chains and boost exports by creating a comprehensive and supportive ecosystem. The initiative is expected to positively impact the growth and advancement of the region’s food manufacturing industry.
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