Dubai Industrial City (DI), one of the region’s largest manufacturing and logistics hubs, has announced that the WenChao Group is investing more than $200 million into the construction of a world-class food manufacturing and distribution facility in the business district.
In a statement, DI said that the agreement was signed at the Global Manufacturing and Industrialisation Summit.
Founded in Dubai in 2006, the WenChao Group has a diverse portfolio which also includes a retail group integrating e-commerce logistics, chain hypermarket ‘Wemart’ and food processing. The organisation has also founded a number of F&B brands, including YaoYi Tea and Tasty Yue, and boasts a global trade network covering nearly 20 countries, the statement added.
Saud Abu Al-Shawareb, Managing Director of Industrial City, said: “We are honoured to welcome WenChao Group into our comprehensive ecosystem. For well over a decade, they have demonstrated tremendous innovation and growth with their production and storage activities, as well as e-commerce logistics.”
He added: “This new partnership demonstrates Dubai Industrial City’s commitment to the Operation 300bn strategy by enhancing the UAE’s industrial sector and diversifying our national economy. This factory will play a major role in localising food production and distribution and feed our ambitions to develop a more sustainable and self-reliant future.”
Phase One of the WenChao Logistics Hub Dubai is scheduled to begin in the first half of 2022. It will comprise of an integrated warehouse, distribution centre, food processing and manufacturing plant for semi-cooked and braised food.
The more than 950,000 sqft factory will incorporate the latest technology to support a predicted food production turnover worth up to $136.1 million annually.
Jiansheng Sun, Chairman of WenChao Group, said: “We are excited to set up our logistic hub in Dubai Industrial City, the first significant milestone of our strategic cooperation. We look forward to creating new engines of opportunity for growth and innovation, building on Dubai’s leading position as a hub for innovation.
“The new world-class logistics and food production facility in Dubai Industrial City will place us in a strong position to manufacture, store and distribute food efficiently while contributing to the local economy.”
Since 2012, the Group has also owned the WenChao Green Farm in Dubai’s Nazwa desert region, where it grows approximately 50 varieties of vegetables across 80,000 sqft. It employs ecologically friendly agricultural methods, swapping out chemical pesticide or fertilizer for organic manure and manual weeding.
The company aims to venture into vertical farming in 2023 by taking advantage of cutting-edge agricultural technologies to overcome challenges posed by the natural desert environment.
The second growth phase will see the construction of a 4 million sqft vertical farm set for completion in 2025.