NFPC and Spinneys sign leases at Kizad

By Eliot Beer

- Last updated on GMT

NFPC and Spinneys sign leases at Kizad

Related tags: Abu dhabi, United arab emirates

UAE firms Spinneys Dubai and the National Food Products Company (NFPC) are both set to establish new facilities in the Khalifa Industrial Zone Abu Dhabi (Kizad), the zone announced.

NFPC will lease more than 750,000 square metres of land in the facility, in a deal worth AED1.5bn (US$408m). Retailer Spinneys will take a 35,000 square metre plot, for a fresh distribution centre and cold storage facility.

NPFC, owner of brands including Oasis, Milco, Lacnor and Blu, will set up new food production facilities on its site. Both companies signed Musataha agreements, leasing the plots for 50 years.

Mega-facility

Kizad and NFPC are delighted to announce the signing of this agreement. NFPC, a food production company which ranks in the top five in the GCC, has chosen Kizad as their next location for its biggest, state of the art food production facility​,” said Kizad CEO Khaled Salmeen.

NFPC CEO Fady Antonios said: “The establishment of the mega-facility at Kizad is a key milestone in developing our operational capabilities to enable a new paradigm of growth for our market leading brands in the food and beverage sector​.”

Spinneys will set up its facility in Kizad's logistics cluster, to handle food and non-food products for the UAE and international markets.

Faster access

Spinneys' investment in Kizad's logistics zone will enable us to take advantage of the low-cost operating environment on offer. In addition to the direct benefits of setting up in the logistics cluster such as proximity to airports and ports in Dubai, Abu Dhabi and other major cities, it will enable us to get our products from international markets faster and more efficiently​,” said Jannie Holtzhausen, CEO of Spinneys Dubai.

Kizad's Salmeen said: “This is a boost for local consumers and the local economy. Using our world-class Khalifa Port to reach target markets with greater efficiency will help Spinneys grow its business reach and potential in the UAE, the GCC and other markets​.”

Kizad is based between Abu Dhabi and Dubai, and is primarily designed to provide easy access to Abu Dhabi's Khalifa Port, along with road links, and eventually the Etihad Rail project. When complete the zone will cover 418 square kilometres.

Related topics: Middle East

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