Leen Alkhair breaks ground on agricultural products processing, marketing factory in Riyadh

Logo of Leen Alkhair Trading Co.

Leen Alkhair Trading Co. said that Minister of Environment, Water and Agriculture Abdulrahman Abdulmohsen AlFadley laid the foundation stone for the company’s agricultural products processing and marketing factory project in Riyadh on Nov. 7.

In a statement to Tadawul, the company said the project aims to develop an integrated system for processing, manufacturing, and marketing fruits and vegetables, with an annual production capacity exceeding 500,000 tons. The project is currently 36% complete, with full completion likely by Sept. 30, 2027.

The project is being built on a 20,000-sqm plot, with a total operational area of 29,000 sqm across three floors. It will also include a separate smart warehouse with a storage capacity of up to 7,000 pallets.

The facility will combine sorting, filling, and packaging lines with food processing and manufacturing technologies, an integrated cooling and smart storage system, automation, and water treatment facilities, supporting operational efficiency and optimal resource utilization.

The factory will also offer a comprehensive range of food products, including fresh, processed, and manufactured items. These will include ready-to-eat cut fruits, vegetables prepared for cooking, salads, juices, ready meals, soups, pastes, sauces, and grilled vegetables, catering to consumer and food service sector needs while expanding the use of local crops.

The company expects the project to enhance its production capacity and competitiveness by expanding its product range, improving operational efficiency, and adopting modern manufacturing and storage technologies, thereby, strengthening its ability to meet demand and support growth and expansion in the market.

The project is also based on diversifying the uses of agricultural products, from marketing fresh produce to allocating part of the crops for food manufacturing to maximize added value, while directing organic waste to appropriate recycling channels. This is expected to help reduce food loss and waste and promote a circular economy.

The company noted that the project marks a shift from marketing crops in their raw form toward developing a diverse range of value-added food products by integrating agriculture with manufacturing, technology, and logistics services. This approach will expand marketing channels for farmers’ produce, strengthen supply chain resilience, and create new investment and employment opportunities in the agricultural and food industries.

The project aims to maximize the utilization of local agricultural production and enhance food supply chain efficiency, in line with Saudi Vision 2030. The company added that it will announce any developments related to the project and its resulting financial impact in due course.

According to Argaam data, Leen Alkhair signed a two-year contract with Arsan Contracting Co. in November 2023, valued at SAR 294.42 million, excluding VAT, to construct the factory.