The WenChao Group will invest over AED735 million ($200 million) to construct a world-class food manufacturing and distribution facility in Dubai Industrial City (DI), one of the region’s largest manufacturing and logistics hubs.

The first phase of the WenChao Logistics Hub Dubai is scheduled to begin in the first half of 2022, comprising an integrated warehouse, distribution centre, food processing and manufacturing plant for semi-cooked and braised food.

The more than 950,000 sq ft factory will incorporate the latest technology to support a predicted food production turnover worth up to AED500 million annually. 

“For well over a decade, they (WenChao Group) have demonstrated tremendous innovation and growth with their production and storage activities, as well as e-commerce logistics,” said Saud Abu Al-Shawareb, Managing Director of Dubai Industrial City.

“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,” he added.

“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,” said Jiansheng Sun, Chairman of WenChao Group.

Founded in Dubai in 2006, 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.

WenChao Group also owns the WenChao Green Farm in Dubai’s Nazwa desert region since 2012, where it grows approximately 50 varieties of vegetables across 80,000 sq ft. It employs ecologically friendly agricultural methods, swapping out chemical pesticide or fertiliser 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 sq ft vertical farm set for completion in 2025.  

Dubai Industrial City, which provides intelligent infrastructure and integrated solutions for manufacturers and businesses is a key stakeholder in the Dubai Industrial Strategy 2030, tasked with developing priority areas including the Food and Beverage industry. The hub is home to over 250 factories and more than 750 business partners in sector-specific zones, including major local and multinational organisations such as Unilever, Patchi, NMC Trading, Asmak, Al Futtaim Logistics and Al Shayea.

Offering a cost-effective and efficient business environment for the region’s manufacturing sector, Dubai Industrial City today serves as an enabling ecosystem for manufacturing and logistics with its integrated offerings of industrial land, state-of-the-art warehousing, office space, retail space, showrooms, and worker accommodation.