PepsiCo unveils expanded sustainable manufacturing hub in Saudi Arabia

SAUDI ARABIA – In Saudi Arabia, PepsiCo has officially opened its expanded plant in Dammam’s 2nd Industrial City, following a US$80 million investment. 

The facility, inaugurated by His Excellency Bandar AlKhorayef, Minister of Industry and Mineral Resources, underscores the company’s commitment to advancing sustainable practices in the Middle East.

According to officials, this expansion forms part of PepsiCo’s larger US$2.4 billion investment in Saudi Arabia over the past eight years. 

The site now serves as a vital production and export center, supplying snacks to markets such as the UAE, Qatar, Bahrain, Kuwait, Jordan, Oman, Lebanon, and Yemen. 

Spanning 55,000 square meters, the plant integrates cutting-edge technologies aimed at reducing environmental impact, including automated slicing systems, solar panels that generate 510 MWh of clean energy annually, and advanced water-saving mechanisms. 

Built to LEED certification standards, it ranks among PepsiCo’s most eco-efficient global operations, promoting resource conservation and lower carbon emissions in packaging and production processes.

“I’m pleased to see PepsiCo’s expansion supporting the growth of Saudi Arabia’s food manufacturing sector, a key priority under the National Industrial Strategy,” said H.E. AlKhorayef in a statement during the event. 

“We remain committed to enabling the continued growth of PepsiCo’s operations.”

Ahmed ElSheikh, President and General Manager of PepsiCo MENA and Pakistan Foods, emphasized the strategic importance of the location.

“Saudi Arabia is at the heart of our regional growth strategy and is a major driver of our global performance,” he stated.

The Dammam hub produces popular brands like Lay’s, Doritos, Cheetos, Quaker, and Tasali, utilizing 100% locally sourced potatoes to minimize transportation emissions. 

With nearly 9,000 employees across 86 locations in the Kingdom, PepsiCo reports that Saudis make up 84% of the workforce, including 22% women in various roles. 

This aligns with the company’s ‘Proudly Saudi’ initiative launched in 2021, which focuses on local talent development, agricultural support, and community programs in line with Vision 2030.

In a related development, PepsiCo recently announced revisions to its global sustainable packaging goals in May 2025, adjusting targets for recyclable and reusable materials to better align with market realities. 

The company now aims for 97% of packaging to be recyclable, compostable, or reusable by 2030, down from an earlier 100% by 2025 ambition, while prioritizing recycled content increases.

These changes, according to a company report, will enhance focus on high-impact areas like the Dammam facility’s energy-efficient operations.

Additionally, PepsiCo inaugurated a new regional headquarters in Riyadh’s King Abdullah Financial District earlier this year, promising more leadership opportunities for Saudis and a US$8 million R&D center to drive innovation in sustainable food technologies. 

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