Mondelez International To Expand Middle East Operations
By Isaac Fletcher, contributing writer, Food Online
The success of the company’s Bahrain plant leaves it looking to capitalize on regional demand by expanding production
Snack manufacturer Mondelez International, producer of brands such as Oreo and Cadbury, is planning on expanding its manufacturing operations in the Middle East area and Bahrain is one of the likely locations for a new plant. Bahrain, which is located in the Persian Gulf to the west of Qatar, is already home to one of Mondelez’s cheese and powdered beverage plants. The current Bahrain plant located in Manama, the capital city, recently celebrated a milestone of producing its one-billionth unit.
Vishal Tikku, Mondelez’s VP and Middle East area director, states, “Over the last six years, we’ve exported products from our Manama facility to more than 20 countries worldwide.” Underscoring the success of the current Bahrain plant, Tikku adds, “The one billion units produced here have generated approximately $1.5 billion in revenue, and since the start of operations, approximately $275 million has been invested in wages and purchase of local material.”
The plant can produce up to 650,000 units of cheese and Tang product units per day and employs 250 laborers. During the milestone celebrations, Tikku mentioned the possibility of further job creation in the near future. Additionally, Mondelez plans to increase the amount of employees that are Bahraini nationals from the current 27 percent up to 35 percent over the next two years.
Recent additions to the plant during the last 12 months, such as state-of-the-art cheese manufacturing equipment, means that a wider range of products can be produced at the facility. Tikku also says that rising demand is leading to the installation of two more production lines over the next two years, one for powdered beverages and one for cheese.
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Bahrain, which has one of the fastest growing economies in the Arab world, is positioned to be a perfect distribution center for products to be exported across the Middle East and Africa regions. In addition, local government agencies, such as the Ministry of Industry and Commerce, are likely to be receptive to any plans Mondelez may make for expansion in the area, since the company has held up its investment and employment commitments. Mondelez’s presence in Bahrain has also acted as a positive indicator for other foreign firms looking to expand in the region, which has further spurred industrial growth and bolstered the company’s public image.