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Halwani Bros Co., one of the Middle East’s largest food producers, said the total costs of its industrial complex in Jeddah reached SAR 426.8 million, rising 29.2 percent, compared to the originally estimated cost.
This rise in costs was attributed to higher prices of equipment, in addition to implementing more security and safety measures, the company said in a statement to the Saudi bourse.
The project was financed through a SAR 165 million loan arranged by the Saudi Industrial Development Fund (SIDF), in addition to the company’s resources, as well as sharia-compliant loans.
The complex is expected to boost the company’s market share, and increase production capacity in line with Halwani’s expansion strategy 2025.
The first phase of Jeddah-based industrial complex was fully operational as of April 2012, at a total value of SAR 82.4 million. The second phase, which was constructed at a total value of SAR 344.4 million, started full operations in July 2016.
The first phase contract was awarded to Allied Engineering Enterprises Saudi Arabia in 2009 at a total value of SAR 52 million. Allied Engineering also won a SAR 110 million contract to provide civil and steel structural work for the second phase in 2011.
Halwani earlier said that it’s expanding manufacturing activities in order to benefit from the rising demand for its products in domestic and international markets.
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