NADEC, Hilton Foods to set up JV for red meat processing

In a statement to Tadawul, NADEC said that the shareholders' agreement includes several terms and conditions governing the JV’s establishment, management, operation and business between the two parties.

This strategic partnership will expand NADEC’s offerings of locally sourced protein (red meat) products. Under the 10-year agreement, the JV will operate NADEC’s boning and retail packing operations at its Haradh plant to provide packaged local red meat products within the Kingdom.

Additionally, the agreement serves as a prelude to other related service agreements aimed at ensuring a sustainable supply chain to meet the needs of all consumer segments and under clear supply terms, exclusively for NADEC in Saudi Arabia and the GCC. The deal is expected to enhance operational efficiency and reduce costs by adopting global best practices in supply chain management.

The partnership aligns with NADEC’s commitment to Vision 2030 initiatives and its efforts to strengthen food security in the Kingdom by enhancing local production capacities and delivering high-quality local protein (red meat) products with diverse options for all consumer segments, the statement added.

Hilton Foods is fully owned by Hilton Food Group Plc, one of the world’s leading companies in the protein (red meat) sector. It offers high-quality meat, seafood, and vegan and vegetarian food products.

The company operates through 24 hi-tech facilities for food processing, packaging, and logistics services, catering to over 19 markets across Europe, Asia, the Pacific, and North America.

There are no related parties to the agreement, NADEC said, adding that any material developments in this regard will be announced in due course.