MANAMA: With $2billion foreign investments already been committed by the foreign companies, Bahrain has emerged as a natural choice for setting up business for the global brands in Bahrain.
On Sunday, the ceremony dubbed as Ocean to Oreo, the foundation stone laying ceremony for the $90million state-of-the-art biscuit plant in Hidd by Mondelez, has bolstered Bahrain’s position as destination of choice for foreign companies.
“The Kingdom of Bahrain has so far secured agreements with 111 companies keen to locate their operations here. Out of those companies 63 are now operational and they directly employ over 4,500 employees; 13 are under construction; 11 have finalized their leases and 24 are at pre-lease stage, according to Zayed R. Alzayani, Minister of Industry and Commerce.
He was speaking after the foundation stone laying ceremony of the Mondelez Bahrain Biscuits at Salman Industrial City, Al-Hidd.
The company announced the project in October 2014. Full commercial production is scheduled to start early next year.
“Over 80% of the total investment to date which includes such global companies as BASF, SIEMENS, RECKITT BENCKISER JBF and of course Mondelez, has come from foreign companies with headquarters in 20 countries including USA, Germany, United Kingdom, France, Spain, India, Singapore, Japan, China, and the Kingdom of Saudi Arabia.
“Mondelez as a brand is well known in every country in the world and in 2013 they generated revenues of $35billion.”
Daniel Myers Executive Vice President of Mondelez International who has travelled from Chicago also joined the Minister and applauded the support of the Government.
“The project is a win-win situation and in fact Mondelez and Bahrain are partners in establishing plant for the global brands. The Ministry has completed land reclamation in a record time with a cost of $80million and we are initially investing $90 million, showing the importance of this venture,” Myers, added.
Mondelēz International’s supply-chain reinvention plan is expected to deliver $3 billion in gross productivity savings, $1.5 billion in net savings and $1 billion in incremental cash during 2014 to 2016. These savings will be a primary driver of significant improvements in the company’s base operating-income margin in the near term.
The ceremony was also attended by the newly appointed Ambassador of US to Bahrain William Roebeck.
Mondelez is the powerhouse of global brands such as Oreo, Nabisco, Cadbury, Ritz, Milka and Toblerone Chocolate, Jacobs Coffee, Tang, LU, and Trident Gum.
“Mondelez International has been a very important part of the manufacturing base here since 2007, when you commenced construction of your first project at the Bahrain International Investment Park,” the Minister said.
“Since then you have invested over $75 million here and created 250 new jobs out of which 30% are Bahrainis.
“In addition, you have injected $250 million into the local economy and developed the capacity to produce 110,000 tons of Kraft cheese and Tang beverages every year.
“I am also pleased to confirm that during the development of the entire project, you surpassed every target that you agreed with the Ministry of Industry and Commerce.
“Today is a very special day for Bahrain because you are here to confirm the construction commencement of a mega project to be built by Mondelez International in our country. We are very honoured that you have again selected the Kingdom of Bahrain as the location for this major development.
“In Mondelez’s new project, you will produce 90,000 tons per year of such well-known biscuit brands as Oreo, Ritz, BelVita, TUC and Prince. This initial investment will be US$90 million leading to the creation of 300 new manufacturing jobs by the end of Phase-1.
“Mondelez was the first company at the Bahrain International Investment Park to reach the Bahraini employment quota and I am delighted to note that you have an ambitious plan to have a high percentage of Bahrainis in your workforce at the new facility,” Al Zayani said.
“In addition, the plant will generate several hundred more direct jobs and sustain thousands of indirect jobs in the local economy through the provision of a wide range of support services,” he said.
“With an integrated supply chain of raw materials, ingredients and packaging requirements together with all of your service providers, adjacent to your new site.
“This development will be a first for Bahrain and for the Middle East region in that you will create a totally integrated food manufacturing campus on your site.
“When you established your plant here in 2007, you were one of the first companies to build a manufacturing facility at the Bahrain International Investment Park.
“We appreciate the continuing support of your local management team, who work closely with us in promoting Bahrain to potential new foreign investors,” the Minister added.
The Government of Bahrain has reclaimed the necessary land for construction of the new plant, which will have a total capacity of nearly 90,000 tons per year. The plot size of more than 250,000 square meters (2.7 million square feet) is the equivalent of 30 soccer pitches.
In the initial two- to three-year phase, the plant will operate four biscuit-manufacturing lines producing – in addition to Oreo, Ritz and belVita – Prince and TUC biscuits, as well Barni cakes. Like other state-of-the-art Mondelēz International plants, the facility is expandable.
The new Bahrain plant will create as many as 300 direct jobs by the end of the initial phase and, through a multiplier effect; help sustain over 1,000 more in the local economy. Aimed at meeting demand in the Middle East and Africa for next 20 years, the facility has the potential to generate several hundred more direct jobs and sustain thousands of indirect jobs depending on future investment-decisions.