Arla Foods has inaugurated a cheese production site in the Kingdom of Bahrain to support the increasing demands for dairy in the Middle East and North Africa (MENA).

The company will invest approximately €50 million ($55 million) in the site over the next two to three years to increase capacity as it becomes the key strategic manufacturing hub for the company in MENA. Arla will also create more than 100 direct jobs over the next two to three years in the local market.

The opening follows Arla’s acquisition of Mondeléz International’s processed cheese business in the region in May 2019, which also gave it full ownership of the production site.

The majority of Arla’s products sold in the region will now be produced locally at the site in Manama, which will enable the company to further expand its branded cheese production and improve overall efficiency in its supply chain. By 2025, Arla expects to increase annual production in Bahrain to more than 100,000 tons under its Puck, Arla, Dano, Kraft and Private Label brands while creating new jobs in the process.

Arla Foods CEO Peder Tuborgh said: “The Middle East and North Africa is a priority market for us and the inauguration of this production site in the Kingdom of Bahrain consolidates our commitment to the region. Our decision to make Bahrain our key manufacturing hub for the MENA region demonstrates our confidence in the Kingdom’s rapidly-growing manufacturing sector and alignment with the nation’s Vision 2030 economic diversification plans.

“Dairy is an integral part of a healthy diet and this new facility will enable us to increase production and step change our innovation speed to meet increasing consumer demand. We are confident that Bahrain will be instrumental to the success of Arla’s growth plans and we are grateful to our local partners and the government whose unwavering support and dedication have made today possible.”

Since 2010, Arla says it has more than doubled its sales organically across the MENA region, which is the company’s largest commercial area outside Europe, through strong positions in cheese, butter and spreads and milk powder and UHT milk.

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