Arla Foods Invests Over $60 Million to Expand Bahrain Dairy Facility
Arla Foods has announced a substantial investment exceeding $60 million to enlarge its dairy manufacturing site located in the Bahrain International Investment Park. The expansion will add 8,000 square metres to the facility, increasing its production capacity by 30%. This site is Arla's largest production hub outside Europe, underscoring the company's commitment to the Middle East and North Africa (MENA) region as a crucial growth and export market.
The investment is primarily focused on scaling up the production of Arla's Puck branded spreadable cheese, a popular product in the Gulf and wider MENA markets. With the increased capacity, Arla aims to enter new markets beyond its current reach of more than 20 countries. Arla's senior vice president for MENA, Kim Villadsen, remarked that the expansion reinforces the company's regional leadership and commitment to sustainable growth.
Acquired in 2019, the Bahrain site has become central to Arla's supply chain for the Gulf Cooperation Council (GCC) countries, as well as parts of Asia and Africa. Thanks to Bahrain's strategic location and favorable trade links, the country is becoming an attractive base for food manufacturers targeting multiple export markets.
The expansion aligns with Bahrain's industrial strategy, which aims to attract high-value manufacturing investments and establish the kingdom as a regional food production hub. According to Bahrain's Ministry of Industry and Commerce, the project will incorporate automation and energy-efficient technologies.
Arla Foods has also emphasized its commitment to local employment, with more than half of the workforce at the Bahrain facility now comprising Bahraini nationals. This move is part of Arla's efforts to localize skilled roles as production scales up. Additionally, the investment follows Arla's receipt of Bahrain's 'Golden License,' a scheme that fast-tracks services and incentives for companies making significant job-creating investments in the country.
