Unilever wins approval to set up JV in Cuba’s Mariel special development zone

Unilever and Intersuchel have received approval from the Government of Cuba to set up a joint venture (JV) in the country’s special development zone.

The JV, dubbed Unilever-Suchel, plans to build a $35m plant in the mega port of Mariel for the production of personal hygiene products and cleaning agents.

The facility, which is expected to start operations in late 2017, will manufacture a range of products under the brands Rexona, Sedal, Lux, OMO, and Close-up.

Unilever will have a 60% interest in the JV. The company joins eight other firms that have gained approval to conduct business in the Mariel zone.

The move marks Unilever’s return to Cuba. The company stopped operations in the country in 2012 when a dispute arose on the controlling stake in its JV with Intersuchel..

Reuters reported that during the dispute, the Cuban communist government wanted the state-owned company to have a majority stake in JVs with foreign companies.

Of late, Cuba has become more supportive for foreign firms since opening the Chinese-style Mariel special development zone in 2014.

Unilever was one of the first companies to set up a venture in Cuba since the Communist authorities opened doors to some Western investment in the 1990s following the fall of the Soviet Union, Reuters said.