PepsiCo Will Open Large Manufacturing Facilities in Saudi Arabia

PepsiCo the global food and beverage conglomerate is planning to open one of its largest ever manufacturing facilities, in the Saudi Arabia city of Jeddah, said one senior official.

The SIBCO facility will be opened later in 2017 confirmed the PepsiCo CEO Sanjeev Chadha of its Asia, Middle East and North Africa (AMENA) region.

During an interview this week, he said the plant would make the wide portfolio of the company including its carbonated drinks such as Pepsi, Mirinda and Mountain Dew, along with other brands like Gatorade.

Chadha said the plant would be one of PepsiCo’s largest worldwide.

While this plant will cater to the entire GCC region, PepsiCo is also looking at the possibility of using the plant to export products across a larger radius.

While beverages weight a great deal, the company is beginning to transport them. They would not ship long distances, but the company is moving on to products with higher value added like Gatorade, making for more opportunities and possibilities of export.

The company, the CEO of AMENA added, is looking into how to create an infrastructure that is required to export, explained Chadha.

In 2016, King Salman the leader of Saudi Arabia announced the kingdom had come to an agreement with Egypt for the construction of a bridge across the Red Sea that would connect the two nations.

Chadha said that if a link was created to connect Saudi Arabia with Egypt, it would be a huge enabler related for much greater trade throughout the Egyptian market.

That would open a market that has 90 million people, added Chadha. The company would be positioned perfectly in Jeddah once the plants are established and the possibilities will be looked into said Chadha.

The regional CEO confirmed as well that a new plant for beverages would be officially opened later this month in Dubai.

The new plant has begun manufacturing some of its products with CEO and chairperson of PepsiCo Indra Nooyi officially inaugurating the plant February 27.

In all, PepsiCo has 17 manufacturing facilities in the GCC region, including ones for the company’s snacks and others that are franchised owned by partners in manufacturing for the beverage part of the company.

The snacks plants that are company owned manufacture Lays Forno, Lays, Doritos, Sunbites, and Cheetos, amongst a host of other types of products.

Together with partners in manufacturing, PepsiCo employs over 15,300 people throughout the GCC region.

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