PepsiCo will build ‘one of its largest manufacturing plants’ in Jeddah, Saudi Arabia, according to local press.
Gulf Business reported that the site, which will open later this year, will be used to fill and bottle some of the company’s most well-known carbonates including Mountain Dew, Mirinda and trademark Pepsi. The plant will be used to supply the entire Gulf region, though PepsiCo has ambitions to expand this distribution farther afield.
Sanjeev Chadha, CEO of PepsiCo in Asia, the Middle East and North Africa, said: “The plant is going to be one of the largest in the PepsiCo system globally.
“While beverages are heavy, we are starting to transport them as well. They won’t ship very long distances, but as we are getting on to higher value-added products, such as Gatorade, there will be greater possibilities and opportunities for looking at export. And we are also looking at how we create the infrastructure [required for exporting].”
Last week, PepsiCo reported flat net revenue of $62.8 billion in its full-year results for 2016, with profit increasing 17% to $9.79 billion.
Alongside its soft drinks, the company manufactures a range of snacks including the Lay’s and Doritos brands of potato chips.
The move is a major boost for Saudi Arabia’s economy, after Irish dairy company Ornua invested in a white cheese production plant in the capital, Riyadh, last year.
It’s two years since Saudi Arabia-based soft drinks distributor Aujan Coca Cola Beverages announced plans to invest $500 million over three years in improving its position within the region’s drinks industry, increasing its capacity and enhancing both its geographic reach and brand development in the region.
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