French dairy company Danone has announced plans to establish a new factory in Saudi Arabia. The $64 million plant is forecasted to expand Saudi retailer, Al-Safi Danone’s production by 247,000 tons by the end of 2003, reported Al-Sharq Al-Awsat . The new factory will be built on 26,000 square meters of land. Danone already operates a 14,000 square meter plant in the Kingdom.
In 2000 Danone entered the yogurt and liquid milk market in Saudi Arabia by signing an agreement with second largest Saudi dairy company, Al-Safi, for a joint company to be owned 50.1 percent by Danone and 49.9 percent by Al Safi. Al-Safi owns a fleet of more than 450 refrigerated trucks delivering directly to 18,000 retail outlets every day. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
