PepsiCo, the American snacks and beverage giant, is set to allocate $53.3 million (SR200 million) for the expansion of a snacks facility in Saudi Arabia.
The proprietor of Lay’s crisps and Doritos brands has announced that the investment in its facility in the eastern city of Dammam will enhance the overall capacity to meet growing local and export demands.
It said that this initiative is part of its Saudi Arabia Vision 2030 plan, designed to enhance the Saudi agricultural sector and boost sustainable food production in the Kingdom.
The expansion of the site is anticipated to be completed by the upcoming year.
Established in 2014, the snacks plant originally operated as a 5,000 sq m manufacturing facility catering to Middle Eastern markets.
PepsiCo produces brands in Saudi Arabia such as Lay’s, Doritos, and Quaker Oats, in addition to the locally recognized crisp brand Tasali.
The capital expenditure initiative, disclosed during the Future Investment Initiative in Riyadh at the close of October, follows closely on the heels of the company’s announcement of an expansion to its snacking plant in the Brazilian town of Cabo de Santo Agostinho.
A new production line is set to be installed at the site, where Cheetos and Cebolitos snacks are manufactured for the local market.
Last month, PepsiCo released its third-quarter results. Net revenue increased by 8.9% year-on-year to $23.45bn while operating profit jumped to $4.02bn.
Its Africa, Middle East and South Asia unit, which includes Saudi Arabia, recorded revenues of $1.61bn for the three-month period, down from $1.72bn 12 months earlier.