Nestle opens Dh530 million factory in Dubai

Nestle Middle East on Tuesday inaugurated its 18th factory in the region at Dubai South to cater to the needs of GCC and Levant countries.
Sheikh Ahmed bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority, Chairman Dubai Airports, Chairman and Chief Executive Emirates Airlines and Group, cut the ribbon to launch Dh530 million Nestle Al Maha with an installed capacity of close to 70KT to manufacture products such as Maggi and Nescafe.
The Vevey-based Swiss brand, known for its food products, already operates two more factories in Dubai Investment Park, one for Nestle Waters, and another - Nestle Dubai Manufacturing - covering Kitkat, Mackintosh's Quality Street, and Nido products. The new facility employs 340 men and women stemming from 20 different nationalities and 60 per cent of them is under 30-year old. 
"Dubai South offers strategic advantages that make it an ideal and attractive destination for leading multinationals," said Sheikh Ahmed.
"It is an important component in Dubai's vision to provide a comprehensive platform that caters to the needs of aviation, air transport, commercial, and logistics businesses," he added.
The Nestle Middle East was formed in 1997 with headquarters in the UAE, consolidating the company's presence in the Gulf Cooperation Council, Levant, Iran, Iraq and Yemen, covering a population of over 220 million. It owns and operates 18 factories that cater to the region, and provides direct employment to more than 11,000 people, more than half of whom work for Nestle Waters.
"Nestle has been the early mover to Dubai South having realised its potential as the economic platform for the future. They have leveraged our excellent infrastructure and ease of doing business to further grow their business," said Khalifa Al Zaffin, executive chairman of Dubai Aviation City Corporation and Dubai South.
Marco Settembri, executive vice-president Nestle SA and head of Zone Europe, Middle East and North Africa; Yves Manghardt, chairman and CEO of Nestle Middle East, and senior executives of Dubai South were also present on the occasion.
"This Dh30 million investment is Nestlé's 18th production site in the Middle East and another milestone in our more than 80 years in this region. It shows our confidence in Dubai and the UAE as a dynamic, stable and competitive business hub, and our long-term commitment to the people of the Middle East," Settembri said.
Manghardt said the total Nestle Investments in the Middle East region over the past 5 years amount to $400 million, and $200 million in salaries and social welfare expenses.
"Nestle Al Maha factory manufactures locally and this will qualify us to source locally, invest locally, make tailored products to meet local tastes and needs, and serve communities in the Middle East region more rapidly and effectively. The products produced at Al Maha Factory cater to GCC and Levant countries as part of the Middle East market," Manghardt said.
About the Nestle Al Maha, he said the factory holds the halal certification of the Emirates Authority for Standardisation and Metrology, runs on 100 per cent LED lighting, which consumes nominal energy, is fully insulated to save air-conditioning energy, recycles 100 per cent of waste from products and raw materials, reaching zero waste for landfill.
"We are also implementing water saving mechanisms, and will have solar-generated power over the coming months," he said.
To a question about the company's new factory in Abu Dhabi, he said last year Nestle Waters signed an agreement with the UAE Higher Corporation for Specialised Economic Zones to build a Dh100 million water factory in Abu Dhabi.
"The 30-year lease covers a 43,000 m2 plot, with the opening planned for 2018. The completed factory is expected to provide up to 100 jobs in its first few years.
To a question, he said Dubai and the UAE provide a dynamic, stable and competitive business hub, and good platform for youth education and engagement and Nestle will continue to plays its role in enhancing quality of life and contributing to a healthier future, its top official says.
"Our purpose over more than 150 years has always been 'enhancing quality of life and contributing to a healthier future," Manghardt concluded.
muzaffarrizvi@khaleejtimes.com