‎Arabian Mills launches SAR 461M projects to expand production capacity

‎Arabian Mills launches SAR 461M projects to expand production capacity ‎Arabian Mills launches SAR 461M projects to expand production capacity

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Logo ofArabian Mills for Food Products Co.

Arabian Mills for Food Products Co.’s board of directors approved the implementation of four strategic projects at its Riyadh and Hail branches, with a total estimated cost of SAR 461 million.

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The initiatives are part of the company’s expansion plans to enhance production operations and strengthen operational capabilities.

In a statement to Tadawul, the company said the projects include building a new flour mill at the Riyadh branch to increase daily flour production by 800 tons to 3,870 tons, at an estimated cost of SAR 347 million. It will also construct a new feed mill at the Riyadh branch to boost daily feed production by 400 tons to 700 tons, at a cost of SAR 57 million.

In addition, new warehouses will be added at the Riyadh branch at a cost of SAR 43 million. The company will also upgrade the flour mill at the Hail branch to raise daily flour production by 150 tons to 750 tons, at a cost of SAR 14 million.

The projects will be financed through the company’s available cash and Shariah-compliant banking facilities.

Construction of the new flour mill, feed mill, and warehouses in Riyadh is expected to start in Q1 2026, while work on upgrading the Hail flour mill is set to begin in Q4 2025, pending regulatory approvals.

The Riyadh projects are expected to be completed in Q1 2028, while the Hail mill upgrade should be finished in Q4 2026, with pilot and commercial production starting in Q1 2027. Each project will undergo a one-month pilot production phase.

Arabian Mills expects the new flour and feed mills in Riyadh and the upgraded Hail flour mill to positively impact financial results following their commercial launch.

Although the Riyadh warehouses are not expected to have an immediate material financial impact, the company anticipates positive long-term strategic and operational benefits once operations begin.

No contracts have yet been signed with contractors for the projects, and any significant developments will be announced in due course.

The company added that these initiatives align with its strategic vision to strengthen food security in the Kingdom and meet growing demand for its products with high quality and advanced efficiency

 

Logo ofArabian Mills for Food Products Co.

Arabian Mills for Food Products Co.’s board of directors approved the implementation of four strategic projects at its Riyadh and Hail branches, with a total estimated cost of SAR 461 million.

The initiatives are part of the company’s expansion plans to enhance production operations and strengthen operational capabilities.

In a statement to Tadawul, the company said the projects include building a new flour mill at the Riyadh branch to increase daily flour production by 800 tons to 3,870 tons, at an estimated cost of SAR 347 million. It will also construct a new feed mill at the Riyadh branch to boost daily feed production by 400 tons to 700 tons, at a cost of SAR 57 million.

In addition, new warehouses will be added at the Riyadh branch at a cost of SAR 43 million. The company will also upgrade the flour mill at the Hail branch to raise daily flour production by 150 tons to 750 tons, at a cost of SAR 14 million.

The projects will be financed through the company’s available cash and Shariah-compliant banking facilities.

Construction of the new flour mill, feed mill, and warehouses in Riyadh is expected to start in Q1 2026, while work on upgrading the Hail flour mill is set to begin in Q4 2025, pending regulatory approvals.

The Riyadh projects are expected to be completed in Q1 2028, while the Hail mill upgrade should be finished in Q4 2026, with pilot and commercial production starting in Q1 2027. Each project will undergo a one-month pilot production phase.

Arabian Mills expects the new flour and feed mills in Riyadh and the upgraded Hail flour mill to positively impact financial results following their commercial launch.

Although the Riyadh warehouses are not expected to have an immediate material financial impact, the company anticipates positive long-term strategic and operational benefits once operations begin.

No contracts have yet been signed with contractors for the projects, and any significant developments will be announced in due course.

The company added that these initiatives align with its strategic vision to strengthen food security in the Kingdom and meet growing demand for its products with high quality and advanced efficiency

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