Saudi’s SADAFCO to set up $7.2mn depot in Makkah Industrial City

Saudia Dairy and Foodstuff Company (SADAFCO), a manufacturer and supplier of dairy products, has received approval from its Board of Directors to build a new $7.2 million depot in Makkah to replace an existing rented facility. 

The 8,009 square meter new facility will be constructed in the Makkah Industrial City on the leased land from Saudi Industrial Property Authority (MODON) for a period of 20 years.

The new Depot which replaces the existing rented location is expected to provide long-term infrastructure solutions to both the distribution and logistic operations, resulting in future cost savings and growth opportunities.

Commenting on the project SADAFCO said, “the project start date will be the first quarter of the fiscal year ending 31 March 2023. The total estimated cost of this project will be approximately $7.2 million. This project will be financed by Company’s own resources.”

The expected completion date of the project is the Q1 of the fiscal year ending 31 March 2024 and the future savings and growth will impact the financial results in the coming periods, while the project completion will impact financially from Q2 of the year 2023.

The pilot production and commercial production of the project are expected to begin in Q1 of the fiscal year ending 31 March 2024. The duration of the pilot production is 1 month.

Saudia Dairy & Foodstuff Company (SADAFCO)

Saudia Dairy & Foodstuff Company (SADAFCO) is a leader in the GCC milk market and the top long-life milk producer in Saudi Arabia. The company is also the market leader in both the Tomato Paste and Ice Cream markets in the Kingdom and it has long been a participant in the Snacks and Fruit Drink markets. Since its inception, SADAFCO has been a pioneer in the production, sales, and distribution of high-quality food products in the GCC and selected export markets in the Middle East and North Africa.

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