Saudi Arabia starts final phase of flour mill privatization

Saudi Arabia's state grain buyer, Saudi Grains Organization (SAGO), announced the start of the second and final phase of the flour milling sector privatization.

SAGO said it will begin receiving prequalification bids as of tomorrow, July 16.

The second phase includes the second and fourth milling companies. The detailed process and timeframe will be published separately.

The second milling company has three branches in Riyadh, Hail and Jizan. It has a production capacity of 1.3 million tons per annum (p.a.) for flour, 180,000 tons for fodder, and 190,000 tons for silos.

The fourth milling company has three branches in Al Dammam, Al Kharj and Al Madinah, with a production capacity of 945,000 tons p.a. for flour, 90,000 tons for fodder and 140,000 for silos.

The announcement followed the completion of the first batch of the sector's privatization.

The first milling company was awarded to Raha AlSafi consortium at SAR 2.027 billion ($540 million), while the third mill went to Alrajhi-Ghurair-Masafi consortium for SAR 750 million.