Dairy giant Arla Foods yesterday broke ground on a massive $60 million (BD22.6m) expansion of its production site in Bahrain, a move set to increase its annual output by 30 per cent.
Located at the Bahrain International Investment Park (BIIP), the project will add 8,000sqm to what is already Arla’s largest production facility outside of Europe.
The expansion is expected to cement Arla’s position as one of the region’s leading dairy producers, specifically boosting the capacity of its popular Puck spreadable cheese jars for export to more than 20 global markets.
The ceremony was attended by high-ranking officials, including Bahrain Chamber chairman Sameer Nass, Industry and Commerce Ministry under-secretary Eman Al Doseri and Bahrain Economic Development Board (EDB) chief of business development Ali Al Mudaifa.
Ms Al Doseri highlighted that the investment reflects deep confidence in Bahrain’s industrial ecosystem.
“Arla’s expansion aligns with the Industrial Sector’s strategic goals (2022-2026) and serves as a model for advanced manufacturing through the adoption of Fourth Industrial Revolution (4IR) technologies and eco-friendly energy solutions,” she said.
Mr Al Mudaifa noted that Bahrain’s strategic location and business-friendly environment were key enablers for the expansion.
“This investment reinforces the kingdom’s strength as a competitive hub for advanced food production and regional growth,” he added.
Arla Foods Mena senior vice-president Kim Villadsen reaffirmed the company’s long-term commitment to the region, stating the expansion would advance ‘sustainable growth’ and strengthen Arla’s regional leadership.
Since acquiring the site in 2019, Arla has significantly invested in local talent, with Bahrainis now making up more than half of its workforce.
The company was recently awarded the prestigious Golden Licence at the Gateway Gulf Investment Forum 2025, a government initiative that provides streamlined services and benefits to large-scale investment projects that drive job creation and economic growth.