Iraq signs $200 million deal with British firm to build baby formula plant
Baghdad (IraqiNews.com) – The Iraq Development Fund and Britain-based Agrium Capital signed a memorandum of understanding (MoU) on Monday to set up the first modern baby formula plant in Iraq.
During a ceremony held in Baghdad to sign the MoU, director of the Iraq Development Fund, Mohammed Al-Najjar, stated that the step is critical for the future of Iraqi youth, as Iraq sees an annual growth in the number of births that exceeds one million children, the Iraqi News Agency (INA) reported.
Many imported brands of baby formula have little nutritional content; thus, this initiative is essential for the health of Iraqi infants and future generations, according to Al-Najjar.
The Iraqi official explained that the plant will be built in Iraq and will use locally produced raw materials, such as milk, to manufacture premium branded baby formula with excellent nutritional content.
Al-Najjar illustrated that Iraq not only relies on imported infant formula but also lacks a comprehensive mechanism for verifying its quality. Having a facility inside the country allows Iraqis to derive economic benefits from the country's cattle while also ensuring excellent quality control.
Agrium Capital works on projects in many countries. The firm employs roughly 3,000 people and has considerable experience in producing infant formula, thanks to its various specialized plants across the world.
With a capital investment of more than $200 million, the factory is intended to be extremely sophisticated. It is expected to have a manufacturing capacity of up to 25,000 tons, which is sufficient to meet 80 to 85 percent of the Iraqi market's requirements.
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