Boston, MA 10/06/2014 (wallstreetpr) – Mondelez International Inc (NASDAQ:MDLZ) intends to invest $90 million to build a biscuit plant at Bahrain. The planned facility will be the advanced manufacturing site for the company in the Middle East and African region that will initiate its operation in early 2016.
Growing opportunities
Mondelez International Inc (NASDAQ:MDLZ) plans for additional investment with increasing demand of biscuits including the popular brand Oreo, Ritz and TUC biscuits. Currently, the market in the Middle East and African region is growing at double digit and expects to continue the trend with the coming years.
The new facility will operate in four manufacturing lines in two to three years that has a total production capacity of 90,000 per year. In addition, it will create 300 direct jobs in the initial phase and expects to generate more direct and also support indirect jobs going forward depending upon the future investment.
Mondelez International Inc (NASDAQ:MDLZ)’s VP, Integrated Supply Chain, Daniel Myers, said that the company is now focusing on capital investment to improve the productivity and also meet the growing demand in the market. The investment in Bahrain is one of such supply chain reinvention plan to scale up the productivity including Mexico and India.
In three years, Mondelez International Inc (NASDAQ:MDLZ) expects to generate gross productivity savings of $3 billion. It includes net savings of $1.5 billion and incremental cash of $1 billion that will anticipate in improvement of its operating margin in near to medium term.
Conclusion
The Government of Bahrain satisfied with the investment of Mondelez International Inc (NASDAQ:MDLZ) and considered as the second major investment in the Middle East region, as said by Dr. Hassan Fakhro, Minister of Industry & Commerce, Bahrain.
Dr. Fakhro also said that Mondelez International Inc (NASDAQ:MDLZ) has rapid growth opportunity across the emerging markets with its iconic brands, and the facility will create an opportunity for jobs and the economy of Bahrain.
In addition, Vishal Tikku, Vice President, Middle East, said that Mondelez International Inc (NASDAQ:MDLZ) is grateful to the Bahrain’s Government to support such future investment while providing facilities to construct large manufacturing plant.
