Dairy co-operative Irish Dairy Board (IDB) is investing €20m in Saudi Arabia to acquire 75% stake in local firm Al Wazeen Trading and establish a new cheese plant at Al Wazeen facility in Riyadh.
The expansion strengthens IDB's position in the Saudi Arabian market as well as provides it with a central hub to access the important dairy markets in the MENA region.
It is a key part in IDB's strategy to grow routes to market and add value for Irish dairy produce in the run up to the abolition of milk quotas in 2015.
Minister for Agriculture, Food and Marine Simon Coveney said, "The IDB's investment in Saudi Arabia opens up considerable market opportunities for the additional milk we are expecting post 2015."
The new facility will produce a range of fresh white cheeses using a pioneering technology developed by the IDB and Teagasc. It will also include an Innovation Hub for the continued research and development of 'white cheese' technologies.
Initially, the products will be supplied to the Saudi Arabian market, which IDB plans to use as a manufacturing hub for the MENA region, supplying the Islamic Halal market segment.
The co-operative stated that fresh white cheese is hugely popular in the Middle East.
IDB CEO Kevin Lane said, "This investment is strategically very important as it allows us to expand our business throughout the MENA region.
"With innovation and new product development being critical to growth, our partnership with Teagasc is an excellent example of how with innovative technologies we can create new ways of producing and selling dairy products for a global audience."
Image: The investment is a part of IDB's strategy to grow routes to market and add value for Irish dairy produce. Photo courtesy of Stephanie Berghaeuser.