Nestlé Signs Agreement with MODON to Establish Its First Food Factory in Saudi Arabia with 270 Million Riyal Investment.
In a significant move to boost local food production, Nestlé has partnered with Saudi Authority for Industrial Cities and Technology Zones “MODON” to construct its first food manufacturing plant in the Kingdom.
The agreement, signed on 15 September 2024 in Riyadh, allocates a 117,000 square metre plot in Jeddah city’s Third Industrial City for the facility.
The signing ceremony was attended by His Excellency Bandar bin Ibrahim Al-Khorayef, Minister of Industry and Mineral Resources and Chairman of the Board of the Saudi Authority for Industrial Cities and Technology Zones “MODON”. Also in attendance was MODON CEO Eng. Majed bin Rafed Al-Argoubi and Nestlé Saudi Arabia CEO Robert Helou.
According to Helou, the project aims in its initial stages to produce children’s food and to launch an automated production line with modern technologies for packaging and filling materials, operated by highly skilled and qualified national personnel in the food industry.
Moreover, Helou claims that it will create hundreds of direct and indirect jobs. The factory consists of a central warehouse, a building for industrial services and facilities, an advanced laboratory, and an administrative building. The targeted production capacity in the first phase is 15 thousand tons annually.
The project seeks to achieve sustainable food security in the Kingdom. In addition, Helou says that the factory aims to meet local demand for its products within Saudi Arabia while also exporting to other Middle Eastern and North African markets.
According to HE Al-Khorayef, the agreement is aligned with KSA’s National Industrial Strategy, whereby MODON is bolstering the food sector by developing food industry clusters in Jeddah’s Second and Third Industrial Cities.
“These clusters are designed to reinforce supply chains and boost exports by creating a comprehensive and supportive ecosystem. This initiative is expected to positively impact the growth and advancement of the region’s food manufacturing industry,” says Al-Khorayef.
