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Saudi drinks company sets up plants in Iran

Saudi Arabian soft drinks producer Aujan Industries is building a filling plant and a factory to make aluminium beverage cans in Iran, the most populous market in the Arab Gulf region.

The can manufacturing plant is a joint venture with Iranian investors. Aujan’s total investment in the two projects will be about $100 million.

Based in Dammam, Saudi Arabia, Aujan is the biggest privately owned beverage company in the Gulf Co-operation Council (GCC) area, and sells its products across the Middle East.

As well as producing the fruit drink Vimto under licence from Nichols of the UK, the 102-year-old company distributes a portfolio of brands including the fruit float Rani, the malt beverage Barbican, and Hani fruit drink for children.

Aujan believes that Iran, with a population of 70 million, represents a major opportunity for further expansion.

"Commercial production at both new facilities is scheduled for the first quarter of 2008," said company President Kerry Anastassiadis. "Iran is a very large market in terms of beverage consumption. Our brand Rani has been available in Iran for numerous years."

Both the beverage filling plant and can plant are being constructed near the Iranian capital Tehran. Aujan is now considering similar projects in Iraq and some North African markets.

The company is also investing $30 million in updating its plant in Dammam, and to expand its sophisticated new plant in Dubai, which was opened in 2005 at a cost of $55 million. The expansion will increase the production capacity of the Dubai plant to 90 million litres per year.