Leading supermarket chain Spinneys has signed an agreement with Khalifa Industrial Zone Abu Dhabi (Kizad) to open a distribution centre with a dedicated cold storage facility at its logistics cluster.

Kizad is a 418 sq km industrial zone strategically located between Abu Dhabi and Dubai wth one of the world’s most advanced deepwater seaports and world-class infrastructure.

As per the agreement, Spinneys has been allocated a 382,905 sq ft plot of land in Kizad’s logistics cluster to build and operate a dedicated cold storage and distribution centre to manage food and non-food products and fast moving consumer goods (FMCG) destined for both UAE stores and international markets.

By signing with Kizad, Spinneys will benefit from the established industrial infrastructure and will have superior access to global supply chains and international markets through the nearby Khalifa Port and the rest of Kizad’s multi-modal transportation network, said Khaled Salmeen, the CEO of Kizad, after signing the 50-year Musataha agreement with Jannie Holtzhausen, the CEO of Spinneys Dubai.

"Spinneys’ facility in Kizad means that they will be able to get products to market quicker and more efficiently, in the UAE and internationally. This is a boost for local consumers and the local economy," remarked Salmeen.

"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," he added.

Commenting on the move, Holtzhausen said: "Spinneys’ investment in Kizad’s logistics zone will enable us to take advantage of the low-cost operating environment utilities 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."

"And in turn our stores can deliver an improved service in the UAE and across the GCC; making Kizad the right place to be for our organization," he stated.

Spinneys Dubai, he noted, had built a strong and well-deserved reputation for freshness and customer service for many years.

"We realise that customer service is underpinned by food safety, quality and freshness; and these values have been the main drivers at Spinneys since the company’s inception," he added.-TradeArabia News Service