Arla Foods is investing EUR 50.9 million to expand its production site in Bahrain, aiming to increase output of its spreadable cheese in glass jars sold under the Puck® brand. The move is part of the company’s plan to strengthen its position in the cheese glass jar segment across the Middle East and North Africa (MENA) region.
The Bahrain facility currently operates near full capacity during seasonal demand peaks, particularly during Ramadan and back-to-school periods. With both occasions expected to coincide in future years due to the shifting date of Ramadan, the need for increased capacity has become more urgent.
“We have one of the most well known and loved dairy products in the region and we are proud to be part of families’ cooking whether it’s during the everyday rush or for special occasions. We know that demand peaks at certain times during the year and in order to accommodate that and maintain the favourability we have with customers and consumers, we are now investing significantly in expanding our production,” said Lillie Li Valeur, Executive Vice President of International at Arla Foods.
The expansion, which includes both production facilities and warehouse space, will increase capacity by approximately 30% and create around 20 new jobs. Arla Foods acquired the Bahrain site in 2019 and has since made several upgrades to support its operations in the MENA region, the largest commercial area within Arla’s international business segment.
“We have a great production setup already in place and we have a popular product expected to grow in demand. Combined with our ambitious company strategy and solid financial situation, that makes for a logical investment to make and I am very pleased to announce it today,” Valeur added.
Sustainability efforts include installing solar panels and upgrading the cooling system to reduce carbon emissions per ton produced.