KAEC — Supporting its role as a hub for international investments and facilitating local production of the Kingdom's food needs, the MAMEE TGU Factory Co., which is a joint venture between Mamee-Double Decker Sendirian Berhad and Top Golden Universe (TGU), has laid the foundation stone for their instant noodles and snack foods factory at the Industrial Valley in King Abdullah Economic City (KAEC). The inauguration ceremony was attended by senior executives from KAEC, the Economic Cities Authority (ECA), Chairman of MAMEE Pang Chin Hin, CEO Pang Tee Chew and COO Pang Tee Nam, and other businessmen. The manufacturing facility, to be built on 30,000 square meters in the Industrial Valley-phase 1, will begin its first developmental phase immediately and become fully operational by 2017. The new double story factory is expected to cover the instant noodles and snack food needs of the Saudi market as well as exporting its products to more than 120 countries. MAMEE TGU also has plans to venture into the manufacturing of beverages in year 3. Fahd Al-Rasheed, Group CEO and Managing Director of KAEC, said: “We are happy to have MAMEE TGU at KAEC's Industrial Valley a key location in their strategic expansion plans.” He added: “We continue to be very successful in attracting leading national and international companies to invest in KAEC and the Industrial Valley, where they are creating clusters of manufacturing and other business operations that are contributing to the diversification of the Kingdom's economy." Pang Tee Chew, Group CEO of MAMEE, said: “We are very proud to be part of this visionary project. We have identified the Kingdom of Saudi Arabia as a strategic market for us not only due to the size of the noodle and snack market at SR650 million and SR300 million respectively but also as a hub to penetrate into the Middle East and North Africa market with a combined noodle and snack market size which is in excess of SR14 billion by 2018.” Rayan Qutub, CEO of the Industrial Valley in KAEC, said: “MAMEE TGU's new factory is a great addition to the list of KAEC's national and international investors looking to establish a foothold in the Industrial Valley.” He added:” Saudi Arabia accounts 60% of the food consumption and 75% of food processing in the Gulf region, and therefore we have developed the Industrial Valley as the new value-added logistics and manufacturing hub with all the advantages of an unrivaled strategic location. The immense investment opportunities available at IV being directly connected to King Abdullah Port, position it as the new manufacturing & logistics hub, and set it as the gateway to Saudi Arabia and the region, enabling investors to reach 250 million consumers in the Arab world and East Africa”. He added: “To date we have attracted a wide range of national and international companies of which 8 are already in operation and 25 others are under construction, focusing on the six industrial clusters: FMCG/foods, pharmaceuticals, logistics, plastics, building materials and the automotive sector.” Qutub furher said: “IV continues to endure the rapidly increasing demand on lease and freehold industrial lands in its second and third phase of development at a speed beyond expectations where currently infrastructure is being developed for an area that exceeds 25 million sqm to cope with the increased demand.” Fayez Al-Sharif, CEO of Al Sharif Group and representative of the Saudi partners in the project, praised KAEC for the well-deserved status it has achieved globally, thanks to its work to become a major hub for global investment. He expressed optimism about the promising opportunities available in the Kingdom, which puts the company on solid ground in Malaysia and the entire Southeast Asia by helping it significantly boost its market share amid the dramatically rising buying power of local consumers. He added: “We will take advantage of the many benefits that KAEC provides, such as the speed and ease with which permits and licenses can be issued, and the ready availability of government services. Naturally, in return, our manufacturing enterprise will multiply job opportunities for young Saudis in various operational and administrative sectors.” Al-Sharif pointed out that with the new factory, MAMEE TGU aims to fulfill the needs of Saudi consumers and to introduce major brand names to the Kingdom. With an initial cost of SR80 million, investment in the manufacturing facility will be increased to SR120 million as production builds up to full capacity within three years. The factory will provide more than 600 jobs and serve the entire Middle East, North Africa and Europe, due to the IV's strategic location and direct link to King Abdullah Port. — SG
