NFPC Invests in Abu Dhabi "Maga Facility" For Growth, Consolidation

Abu Dhabi-based National Food Products Company (NFPC), which produces brands such as Oasis, Blu and Lacnor, announced over the weekend that they have signed a 50-year Musataha agreement with Khalifa Industrial Free Zone (Kizad) in Abu Dhabi that will include an investment of Dhs1.5 billion by NFPC to build a mega-facility that will be spread across eight million square feet of land in Kizad. A Musataha agreement is long-term bankable agreement that entitles the lease holder to use the asset to raise capital.

The ground breaking for the factory is estimated to take place in Kizad by the second quarter of this year while operations are slated to begin by the end of first quarter of 2017, officials said at the announcement.

“The location of Kizad between the two largest economies of the UAE, coupled with access to the Etihad Rail and Khalifa Port, will create a strategic advantage for us to reach existing and new markets efficiently,” said Fady Antonios, CEO and president of NFPC.

Kizad has attracted a number of international investors in the food and beverage industry. Last year, South America’s largest food processing company Brasil Foods (BRF) announced the opening of a Dhs533 million facility in Abu Dhabi’s industrial free zone. The facility, which is the firm’s largest ever built outside South America, is set to begin operating by mid-2014 and will produce meat products, marinated processed foods and bread-based foods under the Sadia and Perdigão brands.

“The food industry in the GCC region promises substantial growth over the next few years and we firmly intend to be a major player in this growth in the further development stages of our industrial zone,” said Khaled Salmeen, CEO and managing director of Kizad. “Kizad is one of the key drivers in Abu Dhabi’s economic diversification and the safety and sustainability of food supplies is a top priority for the region and an important aspect of the Abu Dhabi Economic Vision 2030.”

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