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Mondelez International Beginning Construction of 90 Million Dollar Biscuit Pant in Bahrain

Mondelez International Beginning Construction of 90 Million Dollar Biscuit Pant in Bahrain


MANAMA, BAHRAIN

Mondelez International has laid the cornerstone for construction of its new $90 million biscuit plant in Bahrain.

According to a press release, Mondelez, the world’s leading maker of chocolate, biscuits, gum and candy, is seeking to tap into the rising demand in the Middle East and Africa for the company’s brands like Oreo, Ritz and TUC biscuits.

“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,” said Daniel Myers, Mondelez International Executive VP, 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.” 

The company’s supply chain reinvention plan is set to deliver $3 billion in gross productivity savings, $1.5 billion in net savings and $1 billion in incremental cash during 2014 – 2016. This amount of savings will be a primary driver of significant improvements in the company’s base operating-income margin in the near term.

Myers spoke at a cornerstone ceremony for the plant in Bahrain under the patronage of Bahrain’s Minster of Industry & Commerce, His Excellency Zayed R. Alzayani. Also in attendance were Bahrain Ministers, the President of Bahrain Customs, Sheikh Mohamed Al Khalifa, and the Ambassador of the United States of America to Bahrain, William Roebuck.

“Having confirmed the project in October 2014, we are very pleased to see Mondelez International moving ahead quickly with construction of this multi-million-dollar facility that will make such a valuable contribution to the economy and people of Bahrain,” His Excellency Zayed R. Alzayani said at the event.

Bahrain’s government reclaimed the necessary land for the construction of the plant, which will have a total capacity of nearly 90,000 tons per year. The facility has a plot size of more than 250,000 square meters (2.7 million square feet).

In its initial 2-3 year phase, the plant will operate biscuit-manufacturing lines that will produce Oreo, Ritz, belVita, Rince and TUC biscuits, as well as Barni Cakes. The facility will be expandable while also minimizing the company’s environmental footprint.

This will make Mondelez International’s second major Bahrain investment. The company already invested over $75 million developing a Kraft Cheese and Tang powdered-beverage plant in Bahrain, which has operated since 2008.

Full commercial production at this new plant is scheduled to start early next year.

Mondelez International

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