UK company to build $200m infant formula factory in Iraq

The government-backed Iraq Development Fund and UK company Agrium Capital are planning to establish an infant formula production facility in the country, in a bid to reduce imports. 

The plant’s production will cover 85 percent of the local market’s needs, with a capital expenditure exceeding $200 million, state-run Iraqi News Agency reported, quoting Rod Bassett, managing director of Agrium Capital.

The factory will rely on local raw materials, including milk, to produce branded infant formula, Iraq Development Fund executive director Mohammed Al-Najjar said.

He said that the only Iraqi factory producing infant formula had shut down, leaving the country relying entirely on the import of supplies.

• Iraq finalises nuclear cooperation deal with Russia
• Iranian gas supplies to Iraq fall in May
• EY tells Iraq to change public bank management teams

Bassett said the company, which has been operating in Iraq for the past 15 years, plans to launch several additional projects. 

No details on the projects were given.

Last month Iraq’s finance minister Taif Sami said that the country expects its non-oil sector to grow by 4 percent in 2025 following a 5 percent increase last year.

Citing the International Monetary Fund, the minister said that non-oil growth last year was driven by high state spending and a surge in the farming sector.