The new $90m biscuit factory inaugurated by US-based Mondelez in Bahrain on 17 April, together with the plant it opened in 2008, will create up to 12,000 indirect jobs in Bahrain and neighbouring Gulf countries.

“We have about 370 employed in our two manufacturing plants but the spin off from those two plants in indirect jobs is about 12,000 people,” Daniel Myers, executive vice-president of integrated supply chain, Mondelez, tells MEED. “This is because we have about 350 different suppliers in Bahrain and the Gulf, with primary focus in Bahrain because we would love our suppliers to be as close as possible to our facility.”

The new plant began production in January. It has two lines and produces 45,000 tonnes of Mondelez’s Oreo and Barni biscuits a year. Mondelez plans to add two more lines at a later date.

“The plant was designed to be doubled beyond that, so the masterplan has a facility that will be over 100,000 metric tonnes,” said Myers.

Mondelez chose to add a second production plant in Bahrain for several reasons.

“The reason we selected Bahrain is, first, we have a great relationship with the government. We have been manufacturing in Bahrain for over 10 years and they have got a great workforce. The government has been very stable. We can import raw materials to make our product, manufacture here, create jobs in Bahrain duty free and tax free, and then export our products around the world in essence duty and tax free as well,” says Myers.

Proximity to Bahrain’s Khalifa bin Salman Port is another key factor in Mondelez’s decision.

“We are only one kilometre from the port, so we literally can clear raw materials in 24 hours,” said Myers. “A lot of the other countries around the Gulf area can take up to two weeks.”

The plant serves a range of markets.

“We are already exporting product to 13 countries,” says Myers. “By the end of this calendar year we will be shipping product to over 20 countries, from Australia to China , all the Gulf states. It is a perfect location to ship into East Africa, we have a large manufacturing base in northern Africa and this was designed to support the eastern and southern part of Africa.”