Riyadh - Sharikat Mubasher: The Saudi Authority for Industrial Cities and Technology Zones, also known as MODON, announced the signing of an agreement with Swiss food and beverage company Nestle to establish its first manufacturing plant in Saudi Arabia.

The new facility will be located on a 117,000 sq. meter site in Jeddah’s Third Industrial City, according to the Saudi Press Agency.

The agreement was formalized in the presence of Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef, who also serves as MODON’s chairman.

The signing ceremony, held on Sept.15 in Jeddah, was also attended by Majed Al-Argoubi, CEO of MODON, and Robert Helou, CEO of Nestle Saudi Arabia.

Slated to open in 2025, the plant represents an initial investment of SR270 million ($72 million). The project is set to enhance local production capabilities, contribute to sustainable food security in the Kingdom, and meet local demand while enabling exports to other Middle Eastern and North African markets.

The initiative aligns with Saudi Arabia’s broader efforts to improve food security by diversifying and localizing food sources and reducing import dependency. In support of the National Industrial Strategy, MODON is advancing the food sector through the development of industry clusters in Jeddah’s second and third industrial cities, aimed at strengthening supply chains and boosting exports.

With an initial production target of 15,000 tonnes annually, the plant is expected to foster growth in the region’s food manufacturing industry. The factory will focus on producing food for children and will feature an automated production line with advanced packaging and filling technologies operated by highly skilled local professionals.

The project is anticipated to create hundreds of direct and indirect jobs and will include a central warehouse, an industrial services building, an advanced laboratory, and an administrative office.