Production at Lipton's tea bag factory, one of the largest manufacturing companies in the Jebel Ali Free Zone (Jafz), is set to increase by almost 30 per cent to meet worldwide demand.

The success of the Jafz site was recognised by Unilever, Lipton's parent company, and it has been selected as a strategic sourcing site. "When the factory was set up two years ago, our yearly production target was worth Dh450 million of tea bags purely for the GCC markets," factory manager Tim Drury said.

"Due to the reliability and success of the factory, we will now be producing an additional Dh130 million of exports per annum for Lipton worldwide markets."

Dubai's ideal location near major tea growing countries has added to the factory's success. "Our proximity to countries like Kenya, India and Sri Lanka means that we receive the freshest possible teas for the world famous Lipton Yellow Label. "Another advantage from being located in Dubai is that low cost packaging and very high quality is available locally in the UAE."

The ease and cost of trade at Jafz has been cited as another main factor behind the success of the factory. "The reliability of the Lipton factory is only possible due to the professional business environment and the modern supply chain facilities of the free zone.

"We constantly look at ways of improving our supply chain and have recently renegotiated our logistics and warehouse contracts with MMI and Kanoo Terminal Services."

Sultan bin Sulayem, chief executive of the Ports, Customs and Free Zone Corp, said, "We are very proud that one of the major manufacturing companies located in the free zone has achieved such success. It is proof that the quality of service provided by the free zone can be translated into increased business opportunities."

Being at Jafz means that imported teas and packing materials, together with the exported finished goods, all flow quickly through the port. This enables Lipton to minimise working capital and stock holding while the Jafz labour policy makes it possible for Lipton to employ specialist staff from around the world.

The factory was recently accredited to the international quality management standard ISO 9002. It has also been awarded ISO 14001 certification recognising its achievements in helping protect the environment.