KAEC signs up snacks and cold stores clients
Mamee, working through its joint venture with Top Golden Universe, known as Mamee TGU, will build a US$21.3m factory, to be operational by 2017, with an additional US$10.7m investment to follow. Mamee and KAEC executives laid the foundation stone of the 30,000 square-metre factory at a ceremony last month, in the first phase of developments within KAEC’s Industrial Valley.
$3.7bn market
“We are very proud to be part of this visionary project. We have identified the Kingdom of Saudi Arabia as a strategic market for us not only due to the size of the noodle and snack market at [US$173m] and [US$80m] respectively, but also as a hub to penetrate into the Middle East and North Africa market with a combined noodle and snack market size which is in excess of [US$3.7bn] by 2018,” said Pang Tee Chew, group CEO of Mamee.
Fahd Al-Rasheed, group CEO and managing director of KAEC, said: “We are happy to have Mamee TGU at KAEC's Industrial Valley a key location in their strategic expansion plans. We continue to be very successful in attracting leading national and international companies to invest in KAEC and the Industrial Valley, where they are creating clusters of manufacturing and other business operations that are contributing to the diversification of the Kingdom's economy.”
Strong logistics links
Abullah Abbar and Sons Cold Stores’ new facility will be part of phase three of KAEC’s Industrial Valley. The distribution and logistics centre will cover more than 100,000 square metres, and will take advantage of KAEC’s transport links, including King Abdullah Port, which began full operations in January 2014, along with the city’s new road links.
“We have strong reciprocal links with consumers of our products further to strong alliance with our logistics services clients that we have acquired over 60 years' experience in import and distribution where we support their confidence by our commitment to maintain the high quality of our brands and logistics services, ensuring they are in accordance with global specifications and standards,” said Abdulkarim Abbar, CEO of Abdullah Abbar and Sons Cold Stores.
Rayan Qutub, CEO of KAEC Industrial Valley, said: “Abdullah Abbar and Sons Cold Stores will be an important addition to the cluster of food companies operating in the Industrial Valley, where the operational benefits include the modern and fully integrated infrastructure and many other unique advantages that enable investors to develop and diversify their local, regional and global business operations.
“Saudi Arabia accounts 60% of the food consumption and 75% of food processing in the Gulf region, and therefore we have developed the Industrial Valley as the new value-added logistics and manufacturing hub with all the advantages of an unrivalled strategic location. The immense investment opportunities available at IV being directly connected to King Abdullah Port, position it as the new manufacturing and logistics Hub, and set it as the gateway to Saudi Arabia and the region, enabling investors to reach 250 million consumers in the Arab world and East Africa,” he added.
