DUTCH GIANT UNILEVER BREAKS GROUND FOR FACTORY IN CUBA

Dutch consumer product giant, Unilever, is the largest foreign company to establish itself in Cuba. With the recent move to open up the Cuban economy to foreign investors, the government has created a special economic development zone at the Cuban port of Mariel that is intended to attract foreign investment. Unilever broke ground on a US$35 million joint venture with the Cuban government to produce personal-care products such as shampoo, soaps and other products, for local use and for export. Unilever will hold a 60% ownership of their Cuban investment. The factory is expected to generate a much-needed 300 local jobs and will be managed by Unilever.

Seven other foreign companies have initiated plans to open operations in the special economic zone since it was inaugurated in 2014, but have not completed documentation to do so. Many other firms hope to gain entry into Cuba but are also yet to break ground, while others remain in the early stages of negotiation. Cuba says it hopes to accelerate the pace of foreign investment, which has been lagging at less than half its annual goal of over US$2 billion.