Modern Mills estimates food ingredients factory to cost SAR 87.7M

Logo of Modern Mills for Food Products Co. 

Modern Mills for Food Products Co. said its board approved, on May 7, the establishment of a food ingredients factory in western Saudi Arabia with an annual production capacity of 42,000 metric tons.

The estimated cost is around SAR 87.7 million, the company said in a statement to Tadawul.

The project will be financed through internal resources, Shariah-compliant banking facilities and other financing programs.

The preliminary work on the project is expected to begin in Q3 2026, once the required regulatory approvals are obtained, the statement said.

Modern Mills is finalizing technical assessments and is in talks with contractors and relevant parties to set a timeline for the project completion.

It expects the project to boost revenue and net profit, with the timeline for the financial impact to be announced at a later stage.

The company also said the expected launch dates for trial operations and commercial production will be disclosed in due course. Trial operations are expected to run for about one month.

No contractor has yet been appointed for the project. Further updates will be disclosed later.

According to the statement, the project supports the company’s strategy to expand into higher value-added products and strengthen the localization of the food industry in line with Saudi Arabia’s food security objectives and Vision 2030.