Mondelez International to construct US$90mn biscuit plant in Bahrain

mondelez-ChristianKadluba-flickrThe new investment is part of the company's strategy to reinvent the supply chain, reduce costs and improve productivity. (Image source: ChristianKadluba/Flickr) US-based confectionery maker Mondelez International has laid the cornerstone for the construction of a US$90mn biscuit plant in Bahrain

The manufacturers seek to develop a state-of-the-art facility in the Arab nation as demand for Mondelez products is on the rise, they stated. Commercial production in the facility is expected to begin early next year.

Company officials claimed that Oreo biscuits and Tang powdered beverage are their best-selling products.

Daniel Myers, executive vice-president for integrated supply chain at Mondelez International, said, “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 capitalise on this. The 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.”

The Bahraini government has reclaimed land for the construction of the new plant, which will have a total capacity of nearly 90,000 tonnes per year. The plot exceeds 250,000 sqm in area. 

The company’s supply-chain reinvention plan is expected to deliver US$3bn in gross productivity savings, US$1.5bn in net savings and US$1bn in incremental cash until 2016. The new Bahrain plant is expected to create nearly 300 direct jobs by the end of the initial phase and help sustain over 1,000 more in the local economy.

 

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