Unilever is celebrating the 10th anniversary of its Jebel Ali Free Zone (Jafz)-based Lipton tea factory, which has evolved as the global FMCG group’s leading tea production facility in the region and its second largest tea production facility worldwide.

Until 1998, tea for the Arabian markets was sourced from the UK. Dubai’s strategic location between tea growing areas and the world’s largest tea markets encouraged Unilever to establish its first fully automated tea factory in 1998 in Jafz. While the factory was originally conceived to supply to local markets, the site has since grown in capacity and geographic reach.  With production volumes increasing from 5,000 tonnes to 25,000 tonnes in 10 years, the plant is today a global sourcing hub for exports to 53 countries worldwide.
“Our focus on systems, quality and high levels of efficiencies is what has allowed us to build a global customer base,” states Sanjiv Mehta, chairman Unilever North Africa Middle East.
“Our market share is over 70 per cent in the GCC with Saudi Arabia being the biggest market,” he says. “Despite competition we have been able to retain our market share which reflects the strength of our brand as well as our understanding of Arab consumers and the quality we offer them”
Mehta said Unilever was able to develop tea blends to satisfy the taste of local consumers and gain brand loyalty.

Capacity utilisation high
“Our capacity utilisation is very high, around 96 per cent on tea bags with an OEE of 90 per cent,” says Altug Kucukoglu, works director of the Lipton tea factory, adding that the processed beverage was packed in one million tea bags hourly or 24 million a day, which amounts to seven billion per year.
Ruling out any shrinkage in demand in view of the current economic slowdown, Mehta says the company will continue to enhance capacity to meet demand.
Unilever recently received the MRM business award in the Manufacturing (Free Zones) category for its Lipton factory. It was recognised for its performance on strategic initiatives, leadership perspectives, quality imperatives, corporate culture and corporate social responsibility.
Other awards for excellence that the factory received included one from the Japanese Institute of Plant Maintenance.
Employing around 160 people, the Lipton tea factory is the strategic hub for innovation and development for Unilever’s tea production within the region. The factory is a pioneer in Pyramid flavour tea bags production and technology development.
It has also pioneered a recent environmental initiative which saw Lipton introduce eco-friendly ‘slip-sheets’ to replace wooden pallets in the transportation of raw material from the tea plantations in Assam, India, to Jebel Ali. These sheets being much thinner than the traditional wooden pallets help cut transportation and fuel costs while reducing impact on the environment.
Unilever is one of the world’s largest FMCG companies with strong local roots in over 100 countries. As well as Lipton, its portfolio includes household brands such as Dove, Lux, Sunsilk, Knorr and Omo.