Mohebi Logistics extends Nestlé deal, plans $150m DWC hub

13-Jul-2015 - Last updated on 14-Jul-2015 at 10:01 GMT

Mohebi Logistics and Nestlé have signed a new seven-year agreement, as the logistics firm starts work on a new US$150m hub in Dubai World Central (DWC).

The two companies will both operate facilities at DWC, next to Al Maktoum International Airport, with Nestlé announcing its US$120m facility in the development earlier this month. With Nestlé’s DWC operation scheduled to begin production later this year, Mohebi Logistics will open its hub towards the end of 2016.

“This professional hub will allow us to cater to the more specific needs of the region using the latest technology available. We will also be able to further delight our consumers in the Middle East who will enjoy our products fresher and faster,” said Yves Manghardt, chairman and CEO of Nestlé Middle East.

Closer integration

Nestlé and Mohebi Logistics have been partners for eight years, and the companies say the new agreement will extend the level of integration between their operations.

“It allows us the opportunity to keep providing world-class facilities, leading edge services and highly trained personnel with in-depth local market knowledge. We’ll continue to deliver on our promise to say what we do and do what we say,” said Mohammed Mohebi, CEO of Mohebi Logistics.

The logistics company will be more closely involved in Nestlé’s operations, and will pack finished products and raw materials at Nestlé’s facilities in Dubai’s Technopark free zone, along with its DWC site when operational. Mohebi Logistics will also handle imports of raw materials, providing them to Nestlé on a just-in-time basis, as well as imports of finished Nestlé products from around the world.

DWC and Kizad expansion

The firm’s DWC hub, which will include corporate offices for parent company Zainal Mohebi Holdings, will cover 206,000 square metres. The facility will have storage space for 180,000 pallet positions, more than double Mohebi Logistics’ current capacity of 78,000 positions.

Mohebi has said the company plans to invest US$300m, including the US$150m earmarked for its DWC facilities, to develop its business. The CEO told Logistics Middle East he is also planning to set up operations in Abu Dhabi’s Kizad free zone, saying these facilities will be larger than his company’s Dubai operations.

Founded in 2008, Mohebi Logistics’ other clients include McDonald’s and contract catering firm ADNH Compass.