Shmoh Almadi inks SAR 4.9M contracts with Chinese firms for production, packaging lines

The contract entails the supply of a fully integrated packaging line in accordance with approved technical specifications, in addition to travel and visa expenses for two engineers to handle installation, commissioning, and required testing, in line with the contract’s terms and conditions.

In a separate disclosure, the company announced signing another contract with Sinopec Group (China) to supply and install a fully integrated production line for maamoul and biscuits. The line is expected to enable the company to produce high-quality products, strengthen its competitive position in both domestic and international markets, and support the execution of its long-term strategic growth plan.

The value of this second contract amounts to $800,000 ( around SAR 3 million) and covers the supply of a complete production line with all components and accessories, as well as installation, commissioning, and necessary testing, in line with the contract’s conditions.

The company noted that the first contract has a duration of 70 business days from the date of the advance payment, followed by 35 days for installation and commissioning. The second contract has a duration of 150 business days from the advance payment date, with an expected 90-day installation and trial operation period. The financial impact of both contracts will appear in the company’s capital expenditures during 2025, with a positive impact on financial and operational results starting 2026 once operations commence.

Management highlighted that the contracts align with the company’s strategy to expand production capacity and enhance operational efficiency to meet rising

demand locally and internationally, thereby boosting competitiveness and supporting strategic growth objectives.

The company confirmed that there are no related parties involved and that both contracts were executed in the ordinary course of business without any preferential terms.