A new joint venture has been formed between Juhayna Food Industries, a leading manufacturer of food products, and European dairy cooperative Arla Foods. The company formed will seek to produce and distribute nationwide a range of products including cheese, butter and infant formula, among other potential products.
“The joint venture will also explore the expansion opportunities in other Middle Eastern and African markets,” a statement issued by Juhayna read. “The joint venture will produce Arla-branded products as well as engage in the development of new products. Arla has decades of experience operating in the Middle East”.
The new company, to be named ArJu Food Industries, is aiming to start its sales operations by October 2015.
“A joint venture with an international player of Arla’s quality gives Juhayna the ability to diversify its product range and geographical footprint at a very rapid pace,” said Juhayna Chairman Safwan Thabet. “The combination of Arla’s well-recognised brands and Juhayna’s distribution network and regional know-how will allow the new JV to target domestic and export markets.”
“This partnership is a very good match for both parties,” said Rasmus Malmbak Kjeldsen, Arla’s senior vice president of the Middle East & Africa.
“Juhayna has a nationwide distribution network, and we do not compete in the same product categories,” Kjeldsen said.
Kjeldsen believed that the new company can help in building and growing a broader product portfolio, creative value for the shareholders of both companies.