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Arla Foods, one of the world’s biggest dairy companies, said on Thursday it has now ramped up its production capacity in Saudi Arabia by 40 percent following a multimillion-dollar investment in its production lines in the Gulf state.
The Danish maker of global dairy labels, including Lurpak and Kraft, had previously announced it is investing 64 million riyals ($17mln) in three Saudi-based production lines, which have been operational since September 2021.
The lines are for Starbucks-branded ready-to-drink products; Puck sauces, soups and cooking cream, and organic milk.
The investment is part of the company’s strategy to diversify its product range in the region and tap into Saudi Arabia’s affordable dairy product market.
Arla entered the Saudi market nearly four decades ago. In the last five years, it has invested a total of 127 million riyals in its Saudi business, of which 106 million riyals has been allocated to develop its production facility.
(Writing by Cleofe Maceda; editing by Daniel Luiz)
