The Saudi Authority for Industrial Cities and Technology Zones (Modon) has signed a contract with Nestlé to allocate a 117,000-sq m plot to set up the first food factory in KSA with an initial investment of SR270 million ($72 million). 

 

Scheduled to open in 2025 in the Jeddah Third Industrial City, the factory will contribute to boosting local production, a Saudi Press Agency (SPA) report said.  

 

The signing ceremony was held under the patronage and in the presence of the Minister of Industry and Mineral Resources, Chairman of Modon Bandar bin Ibrahim Al-Khorayef, and Modon CEO Eng Majed Al-Argoubi and Nestlé CEO Robert Helou.

 

Initial phase

In its initial phase, the project will focus on producing baby food and launching an automated production line equipped with the latest packaging technologies operated by qualified national food industry personnel. 

 

The project is expected to create hundreds of direct and indirect jobs during its first phase, with an initial annual production capacity of 15,000 tonnes.

 

In line with the National Industrial Strategy, Modon seeks to enhance the food industries sector through the food cluster initiative in Jeddah's second and third industrial cities. The food cluster aims to enhance supply chains and promote exports by providing an integrated and supportive environment, which positively impacts the growth and development of the food industry sector in the region.--TradeArabia News Service