Logo of Tabuk Agricultural Development Co. (TADCO)
Tabuk Agricultural Development Co. (TADCO) signed, on April 17, a non-binding memorandum of understanding (MoU) with Topian, the NEOM Food Company, to plan, develop, construct, and operate hydroponic greenhouse to produce fruits and vegetables at TADCO’s site in Tabuk.
In a statement to Tadawul, the company noted that the MoU is valid for one year from the signing date or until the signing of a binding agreement.
TADCO’s main obligations include sourcing 100 hectares of agricultural land appropriate for constructing a mid-tech hydroponic vegetable facility in a suitable location in Tabuk with sufficient water and electricity for the purposes of the project.
In addition, assisting in arranging the offtake to Topian for Saudi supermarket, retail and wholesale buyers for the products; providing warehousing, cold storage, labor and other available appropriate equipment for the use of the project; and providing support for the supervision of the construction of the facility.
The main obligations for Topian include the responsibility for the design and installation of the greenhouse; provide technical expertise for the establishment, running and operation of the facility; negotiate and place contracts for all indoor growing, greenhouse, packing and grading supplies; and define the production plan and manage customer relations.
Its obligations also include assisting in the recruitment, supervision and managment the workforce; providing training to the local workforce; and securing the sale and distribution of all production from the facility.
The final agreement is subject to the completion of the financial and legal due diligence process by both parties, followed by the negotiations for signing a binding agreement, the statement said, indicating that the deal does not include related parties.
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