PepsiCo to establish its largest manufacturing plant in Saudi Arabia

American multinational company, Global F&B conglomerate PepsiCo, has started to plan to launch its largest manufacturing plant in the Kingdom of Saudi Arabia. The beverages plant will be in Jeddah which is considered as the prime hub and second industrial growing city of Saudi Arabia. Saudi Industrial Beverages Company (SIBCO) is going to start a mega project to be opened in Jeddah. This mega project’s scope is to establish new Pepsi factory in Jeddah. The total covering the area of the project is about 138,158 m². The structure of the project building consists of steel with wall and roof cladding. The cladding is a strong and multi-purpose roofing and walling used in projects. It is a combination of traditional and modern architecture. [irp]

Mr. Sanjeev Chadha who holds the position of Chief Executive Officer (CEO) of the Middle East and North Africa (AMENA) PepsiCo, confirmed the report of the Saudi Industrial Beverages Company (SIBCO) plant in Saudi Arabia. Mr. Sanjeev Chadha also added that hopefully, this new mega-plant in Jeddah will start working by the end of this year. In an exclusive interview given by Mr. Sanjeev Chadha to the Gulf Business, he revealed the fact that this new beverage plant in Jeddah will be marked as one of the largest plants in the PepsiCo network globally. It will manufacture carbonates which include Pepsi, Mountain Dew, Mirinda and another similar healthy drink brand such as Gatorade. The Gatorade is an American manufacturer drink brand which comprises of sports-themed beverage and food products.

Gatorade is manufactured by PepsiCo and exported in over 80 countries globally. Besides this, the facility will entertain the entire Gulf Cooperation Council (GCC) region. The company is also focusing on the possibility of exporting products. Although beverages are heavy enough, they are thinking to start transporting them as well. These beverages possibly won’t be able to be shipped to very long distances.  He said that they included higher value products, such as Gatorade, hence there will be greater probability and choices available to be considered for export.

They also have focused on establishing best possible infrastructure which is required for exports. King of Saudi Arabia, Salman bin Abdulaziz Al Saud notified last year that the Kingdom is working on an agreement with Egypt. The agreement is to build a bridge over the Red Sea which will connect the two countries but still further details regarding the agreement are not shared. If there is a link created in the form of a bridge between Saudi Arabia and Egypt, it will be a great step and a door open for trading on the market in Egypt.[irp]

He added that they are focusing on all effective possibilities as soon as the plant sets up. The CEO also stated that a new beverages plant in Dubai is established and this month it will officially open.  In short, PepsiCo currently possesses 17 manufacturing plants in the Gulf Cooperation Council (GCC) and holds employs which are more than 15,300 people across the Gulf Cooperation Council.  We have best wishes for the new PepsiCo project plant in Saudi Arabia.

Source: Gulf Business