Dubai-based Al Khaleej Sugar Company has joined hands with Iberica Sugar Company to build a new plant in the Spanish city of Merida, thus extending its reach beyond the Middle East. Once operational, it will boast a production capacity of 900,000 MT per annum.
Al Kaleej Sugar was established in 1992 at Jebel Ali in Dubai with a production capacity of 2400MT. Since then it has made remarkable progress to achieve the status of the largest standalone sugar refinery in the world with a production capability of more than 7,000 tonnes per day.
The Dubai group is looking at investing around €500 million ($590 million) in the new factory, reported Bloomberg, citing a senior official.
"We will start work on the Spanish project next year and the operations are due to begin in 2024," said its managing director Jamal Al Ghurair.
Al Khaleej, which profits from refining raw sugar and redistributing it in the Mena region, has faced rising competition from the EU and India in recent years.