Arla Foods invests US$60M to expand its Bahrain dairy facility

BAHRAIN – Arla Foods has announced the groundbreaking of its facility expansion, valued at over US$60 Million (50.9 million Euro), in the Kingdom of Bahrain.

The milestone investment will add 8,000 sqm to Arla’s largest production facility outside Europe and will increase its annual production volume by 30%, making Arla one of the largest dairy makers in the region.

The Dairy cooperative’s major investment of more than USD 60 million in expanding its Bahrain production site will increase the production capacity of the popular spreadable cheese jars sold under the Puck^® brandwhile enabling Arla to export to new markets beyond its existing presence in more than 20 countries.

Her Excellency Eman Ahmed Al-Doseri, Undersecretary of the Ministry of Industry and Commerce, noted, “This USD 60+ million investment reflects the confidence in Bahrain’s ecosystem and its attractiveness to diverse industrial investments. Arla’s expansion aligns with the objectives of the Industrial Sector’s strategic goals (2022-2026) and serves as a model for advanced and sustainable manufacturing through the adoption of the Fourth Industrial Revolution technologies and environmentally-friendly energy solutions.

“The project further showcases the success of the government’s efforts in attracting value-adding investments within the sector, as well as supporting industrial development initiatives, further strengthening Bahrain’s position as a regional hub for food manufacturing.”

Since acquiring the Bahrain production site in 2019, Arla Foods has made significant progress in developing local talent, with Bahrainis now accounting for more than half of its workforce.

This reflects the company’s commitment to investing in national capabilities by supporting skilled employment opportunities and contributing to Bahrain’s Manufacturing sector.

Arla Foods received a Golden License at the Gateway Gulf Investment Forum 2025, highlighting the company’s continued investment and long-term commitment to the Kingdom.

The Golden License, announced in 2023, provides streamlined services to businesses with large-scale investment projects in Bahrain with the aim of supporting investment and boosting job creation.

Kim Villadsen, Senior Vice President Arla Foods MENA, stated, “By expanding our Bahrain facility, Arla is strengthening its regional leadership, increasing production capacity, and advancing sustainable growth, reaffirming our long-term commitment to the families and communities we serve across the MENA region.”

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