Nestlé Invests AED 500m in Dubai to Setup New Manufacturing Plant
With the spending power of consumers in Dubai and the United Arab Emirates (UAE) increasing greatly thanks to a growing economy, Switzerland-based food manufacturing giant, Nestlé, is gearing up to add another production plant in Dubai to take advantage of the growing demand for its products.
Nestlé already runs a manufacturing plant in Dubai and has now signed an agreement with Dubai World Central (DWC) to develop a new AED 500,000,000 plant in the emirate on a plot of 175,000 metres.
The new plant will create a further 800 jobs and help the food giant to meet the demand for its products in the emirate.
Located close to the Jebel Ali Sea Port, the plant will be situated in an ideal location for its operations and Nestlé will use it to manufacture its nutrition, culinary and coffee products for the Dubai, UAE and the rest of the Middle East market.
The move comes at an ideal time when the UAE economy is growing fast allowing people to spend more. A major chunk of the population is made up of young adults giving Nestlé a huge market to serve with its products.
Yves Manghardt, the chairman and chief executive of Nestlé Middle East said that the new plant is in line with the company’s plans to increase its presence across the region.
According to Gulf News, he said:
“Nestlé is committed to strengthening our presence in the Middle East markets. We will continue to invest in projects that enable us to better serve consumers in the region.”
Hans Juergen Jung, the technical director at Nestlé said about the new plant:
“Producing locally allows us to bring products faster, and therefore fresher, to consumers,”
Adding further he said:
“The construction of a new facility at Dubai World Central strengthens our local manufacturing capabilities, giving us more flexibility in adopting our products to local consumer preferences.”
Nestlé has a huge presence across the globe and produces some of the world’s most well known brands such as Nescafe, Kit Kat, Maggi and Nesquik.
Investment by Nestlé in its new plant is in line with market trends as a number of Fast Moving Consumer Goods (FMCG) manufacturers have pumped in billions of dollars in investment into the Middle East region.
Most of this is due to the rising economies in most of the countries as well as the fact that a majority of the population of these countries are made up of young people who are the main target market of these products.
Dubai with its favourable tax policies as well as business friendly environment provides unmatched opportunities to companies to setup their manufacturing facilities in the emirate and Nestlé along with a host of other big multinational corporations are increasing their investments in Dubai.