May 18, 2020

Ritz Crackers and TUC Biscuits to move into $170m Bahrain Food Hub

food and drink
Finance
Manufacturing
Bahrain
Bizclik Editor
2 min
Ritz Crackers and TUC Biscuits to move into $170m Bahrain Food Hub

A huge food factory is being constructed in Bahrain by American industry giant Mondelez International, a facility which will produce among other treats Ritz Crackers and TUC Biscuits.

The total amount spent on the site will be in the region of $170 million, with $80 million being spent by the Bahrain authorities to reclaim the land in Hidd, which is being used by Mondelez to build its $90 million manufacturing complex.

Production of foods including ‘Made in Bahrain’ Oreo cookies, belVita biscuits, Prince biscuits and Barni cakes is expected to begin sometime in 2016, with the site eventually set to make 90,000 tonnes of biscuit a year.

The food manufacturing will be spread over 250,000 square metres, the largest site owned by Mondelez in the region, with the land being reclaimed in just 140 days.

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According to Gulf Daily News, Mondelez International integrated supply chain executive vice-president Daniel Myers said: “It is incredible that the land we stand on now was water just a few months ago and we will be achieving our dream of from ocean to Oreo within 18 months.

“The Bahrain government has spent $80 million to reclaim the land and we are investing $90 million for the construction of the plant.

“This new investment is part of our journey to reinvent our supply chain around the world to meet growth demands, while also reducing costs and improving productivity.

“As many as 300 direct jobs will be created by the factory by the end of the initial phase. We also expect to help sustain over 1,500 more jobs in the local economy.”

Mondelez may be better known to some as Kraft Foods, its former name, and the company has already invested $75 million in the Kraft Cheese and Tang powdered-beverage plant in Bahrain, operational since 2008. 

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Jun 8, 2021

UK office space slashed as hybrid working looks set to stay

offices
hybridworking
realestate
PwC
Kate Birch
3 min
As more UK firms announce a hybrid way of working, new research suggests a third of businesses will reduce their office footprint by more than 30%

With hybrid predicted to be the working model of the future, and businesses both large and small announcing that WFH will continue for employees into the future, the traditional office space is being re-thought.

Businesses are both questioning how much space they need for a hybrid working future, especially if it means they can potentially save money, and what form that space should take.

UK firms slashing office space

Back as early as February, HSBC – whose real estate footprint currently stretches to around 112 football pitches worldwide – said it would be cutting its post-COVID office space by half globally and by 40% in London over the next few years, as it looks to implementation of a hybrid working model in light of the pandemic.

Lloyds Bank followed suit. Following an internal survey where 77% of employees said they wanted to continue to work for 3+ days a week post-pandemic, the bank announced it was also moving to a hybrid model, and so looking to cut its office space by 20% over the next two years.

In fact, the latest research from consulting firm PwC reveals that a third of organisations surveyed (258 of the UK’s largest companies) believe they will reduce their office footprint by more than 30%.

The findings of PwC’s Occupier Survey indicate there is likely to be a sizeable fall in occupied office space with half of executives surveyed saying that despite taking into account mass vaccinations, employees will continue to work virtually 2-3 days a week.

And companies continue to announce the hybrid working model for their employees. Accountancy firm EY has just announced that its 17,000 employees are moving to a hybrid way of working, WFH for at least two days a week. This follows PwC which in March said workers could stay at home for half the time and KPMG which this month said it would expect employees to only work two days in the office every week.

More collaborative work spaces

However, what’s also clear from PwC’s research is that the role of the office is not going to disappear completely, but instead adapt to a new way of working, with half of all organisations with more than 100 employees saying they have a real estate and workplace strategy that considers the long-term impact of COVID-19.

“We may see an increased demand for flexible space as many businesses operating models may well need that option if holding dead space is to be avoided,” says Angus Johnson, UK Real Estate Leader at PwC UK.

According to the survey, more than three quarters of respondents said they are likely to reconfigure existing office with 43% of financial services firms stating that they are extremely likely to do so as a result of the pandemic.

“It’s also clear that the nature and purpose of office space is going to change. As occupiers seek new, different space to meet their accommodation needs, environmental aspects will be increasingly important. If the real estate sector is to truly succeed as a more dynamic, greener industry it’s imperative that creative thinking comes to the fore.”

And companies are already thinking creatively how they can utilise office space in a hybrid future. So while HSBC is cutting a significant amount of office space, it is not downsizing its prestigious Canary Wharf headquarters, and instead reimagining the space. In April, CEO Noel Quinn announced the firm was embracing an open plan floor, with no designated desks or private offices, and instead using hot-desks in line with the future hybrid working style. “My leadership team and I have moved to a fully open-plan floor of the building in east London with no designated desks,” he said on LinkedIn.

Lloyds also reported it was adapting its office space, so that rather than individual offices, it will have a more collaborative workspace. And just last month, KPMG announced it too was ditching desks and individual offices, and replacing them with meeting rooms and conference halls for a more collaborative workspace.

 

 

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