Mondelez International Constructing $90 Million Biscuit Plant in Bahrain
Mondelez International has laid the cornerstone for construction of its new $90 million biscuit plant in Bahrain as the world’s leading maker of chocolate, biscuits, gum and candy seeks to tap rising demand in the Middle East and Africa for company brands such as Oreo, Ritz and TUC biscuits.
The company announced the project in October 2014. Full commercial production is scheduled to start early next year.
“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 capitalize on this,” says Daniel Myers, Mondelez International Executive Vice President, Integrated Supply Chain. “This 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.”
Mondelez International’s supply-chain reinvention plan is expected to deliver $3 billion in gross productivity savings, $1.5 billion in net savings and $1 billion in incremental cash during 2014 to 2016. These savings will be a primary driver of significant improvements in the company’s base operating-income margin in the near term.
The Government of Bahrain has reclaimed the necessary land for construction of the new plant, which will have a total capacity of nearly 90,000 tons per year. In the initial two- to three-year phase, the plant will operate four biscuit-manufacturing lines producing – in addition to Oreo, Ritz and belVita – Prince and TUC biscuits, as well Barni cakes.
This is Mondelez International’s second major investment in Bahrain. The world’s leading snacks powerhouse has already invested more than $75 million in developing a Kraft Cheese and Tang powdered-beverage plant in Bahrain which has been operational since 2008. With a production capacity of 110,000 tons per year, the existing facility employs more than 240 people and has injected over $250 million in the local economy since construction through wages, and purchase of goods and services.
