Swiss food and beverage giant Nestle plans to open its first food factory in Saudi Arabia, as reported recently.
Scheduled for a 2025 launch, the 117,000-square-meter facility will be located in Jeddah’s Third Industrial City.
Nestle is investing 270 million riyals ($72 million) in this project, according to the Saudi Press Agency (SPA).
The announcement was made during a signing ceremony in Jeddah, attended by Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar Alkhorayef, who also chairs the Saudi Authority for Industrial Cities and Technology Zones (MODON), as well as MODON CEO Majed Al-Argoubi and Nestle CEO Robert Helou.
The factory aims to produce 15,000 metric tons annually, focusing on children’s food with an automated production line featuring advanced packaging and filling technology, managed by local workers.
Nestle seeks to expand its presence in the Middle East, while Saudi Arabia aims to strengthen its supply chains.
Despite this new venture, Nestle has been active in the Saudi market since 2001, making it a significant market for the company in the Middle East and North Africa, where it operates 25 factories across 19 countries.
Nestle’s products in Saudi Arabia include dairy, infant nutrition, coffee and creamers, confectionery, bottled water, breakfast cereals, and pet care.
In late 2022, Nestle announced plans to invest 7 billion riyals in Saudi Arabia over the next decade, including the construction of this new manufacturing site.