NZ firm buys Saudi dairy factory for $32m
Dammam, April 27, 2010
New Zealand-based and farmer-owned Fonterra, the world’s largest dairy processor, recently acquired the Saudi New Zealand Milk Products (SNZMP) dairy factory in Dammam for SR120 million ($32 million).
New Zealand’s Minister of Trade Tim Groser attended the official inauguration ceremony at the site along with local officials.
“The GCC holds increasing importance for New Zealand, and our visit to the region aims to extend our existing trade relationships as well as investigate new opportunities for trade and investment in the region,” said Groser.
“The ceremony today represents yet another advance in expanding the reach of New Zealand products and expertise within this prosperous market,” he added.
Amr Farghal, managing director of Fonterra Middle East, Africa (MEA) and commonwealth of independent states (CIS) said the official ceremony marked the beginning of the next stage for Fonterra’s business in Saudi Arabia.
“Saudi Arabia is the cornerstone of our business in the GCC. With full ownership of our investment here, we will be able to secure the future manufacturing requirements needed to meet growing demand for high quality, New Zealand dairy in the region,” he said.
Fonterra previously owned a 49 per cent stake in the SNZMP dairy manufacturing factory with former joint-venture partner Saudia Dairy and Foodstuff Company (SADAFCO), which owned the remaining 51 per cent stake. – TradeArabia News Service