Arla Foods has announced today (Thursday August 14), that it will be investing €50.9 million in its Bahrain-based cheese factory.
The investment will help the dairy cooperative add approximately 30% extra to its current production capacity at the site.
The financial injection will see both production facilities on the site, as well as the warehouse, getting significant upgrades.
The investment will also create 20 new jobs, as well as reducing the site’s carbon emissions by incorporating roof solar panels and changing the cooling setup.
Arla Foods has stated that it expects construction to begin at the end of 2025.
The spreadable cheese made on site is sold in a glass jar under the brand name Puck, and distributed through the Middle East and North Africa (MENA).
The dairy cooperative said that its factory runs at capacity during peak demand times such as back to school season and Ramadan.
Arla Foods
International Arla Foods executive vice president Lillie Li Valeur said: “We have one of the most well-known and loved dairy products in the region and we are proud to be part of families’ cooking, whether it’s during the everyday rush or for special occasions.
“We know that demand peaks at certain times during the year and in order to accommodate that and maintain the favourability we have with customers and consumers, we are now investing significantly in expanding our production.”
Arla Foods highlighted that it has being investing in the Bahrain site since it was acquired back in 2019.
The executive vice president said: “We have a great production setup already in place and we have a popular product expected to grow in demand.
“Combined with our ambitious company strategy and solid financial situation, that makes for a logical investment to make and I am very pleased to announce it today.”
Li Valeur said the investment will benefit consumers while also creating value for produce for the farmers who supply them.
She added: “The MENA region is important to us not just on a commercial level. As a food company, we want to inspire great food habits and help consumers make smart choices when it comes to nutrition and cooking.
“We have that connection with consumers in the MENA region, but we know we need to work hard to keep their trust and this investment is a natural part of that commitment.”
