SLG Group to build US $55mn facility in Dubai Industrial City

The firm is one of the Middle East’s leading suppliers of milk powder including leading brands such as Lancy, Gardo, Silva, SLG, Sama, Zain, Al Sahem etc

Silver Line Gate Group (SLG) has said it is building a new manufacturing, warehouse and corporate offices facility, spanning 1.37m sqft at Dubai Industrial City. The firm said the US $55mn facility is taking shape in Dubai Industrial City and will open in 2025, and bolster’s the UAE’s commitment to building a self-reliant food security program.

According to a statement, the new facility joins a growing number of food manufacturers, processing firms producing and exporting foodstuff globally from the industrial hub, boosting foreign trade and supporting the Dubai Economic Agenda D33.

The new facility will meet the demands of B2B and B2C customers across the GCC, African market and Southeast Asia, and support the distribution of wholesale bakery products such as butter, whey powder, and vegetable shortening to bakeries, restaurants, ice cream manufacturers, hotels, caterers and other users across the UAE, it added.

“UAE leadership underscores food security as one of its key priorities. With a growing volume of Dubai-based food manufacturers located in one address, Dubai Industrial City is leading the way for Dubai to cultivate a self-reliant food programme. We are pleased to welcome Silver Line Gate Group (SLG) into our growing community of food manufacturers and distributors who ensure people across the UAE, Middle East and beyond always have access to nutritious food products,” said Saud Abu Alshawareb, Executive Vice President of Industrial Leasing – TECOM Group on behalf of Dubai Industrial City.

In early October 2022, M Glory said it was opening a new electric car manufacturing unit in Dubai Industrial City and, in late January 2023, a Knight Frank report showed that Grade A warehouse lease rates were continuing to rise.

SLG’s new facility is said to be designed to meet the growing dairy ingredients market by using advanced technologies with fully automated machinery and equipment, and will create more than 300 jobs. Dubai’s strategic location, paired with Dubai Industrial City’s extensive transport network that includes land, air, sea, and soon Etihad Rail, will provide the firm with unrivalled and convenient access to key markets, it added.

Mrs. Shereen Saeed, General Manager, at SLG Group added, “Our business is growing rapidly, fuelled by a growing demand for powdered milk and related products across the region. Our ability to cater to this demand, in terms of both output and timely delivery, hinges on our facility. Dubai Industrial City offers us fully equipped industrial infrastructure to easily set up a state-of-the-art manufacturing and logistics centre from which we can better cater to many other markets. Dubai is fast becoming the industrial centre of the region, and we’re thrilled by this chapter in our company’s growth and global expansion story.”

As per Mordor Intelligence, the Middle East and Africa dairy ingredients market is projected to grow at a compound annual growth rate (CAGR) of 5.7% between 2020 and 2025. The popularity of whey proteins, driven by a renewed focus on active lifestyles and fitness, and the growing use of infant milk formula contribute to greater demand for milk products, the statement concluded.

In late February 2023, Tawazun Industrial Park and Yellow Door Energy inked a deal for a 4.4MW solar project.

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