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Arabian Mills for Food Products Co. expects the Riyadh flour and feed mills and the Hail upgrade to have a positive financial impact from 2027–2028
Arabian Mills for Food Products Co. said its board approved four strategic projects with a total estimated cost of SAR 461 million to expand production at its Riyadh and Hail branches.
The initiatives are part of the company’s expansion plans to enhance production operations and strengthen operational capabilities.
In a statement to Tadawul, the company said the projects include:
|
Project |
Estimated Cost (SAR mIn) |
Target |
Expected Start Date |
Expected Completion & Production Start |
Expected Financial Impact Date |
|
|
Building a new flour mill at the Riyadh branch |
347 |
Increase daily flour production by 800 tons to 3,870 tons |
Q1 2026 |
Q1 2028 |
Q2 2028 |
|
|
Building a new feed mill at the Riyadh branch |
57 |
Boost daily feed production by 400 tons to 700 tons |
Q1 2026 |
Q1 2028 |
Q2 2028 |
|
|
Building new warehouses at the Riyadh branch |
43 |
-- |
Q1 2026 |
Q1 2028 |
Q2 2028 |
|
|
Upgrading the flour mill at the Hail branch |
14 |
Increase daily flour production by 150 tons to 750 tons |
Q4 2025 |
Q4 2026 (pilot & commercial production starting Q1 2027) |
Q1 2027 |
The projects will be financed through available cash and Shariah-compliant bank facilities and will start once regulatory approvals are obtained.
Each will undergo a one-month pilot run before full commercial operations.
Arabian Mills expects the Riyadh flour and feed mills once commercial operations start and the Hail upgrade completion to deliver a positive financial impact on its results.
While the Riyadh warehouses are not expected to have a direct financial impact on Arabian Mills’ results, the company said they will provide a long-term strategic impact.
No contracts have yet been signed. Arabian Mills added that the expansion aligns with its strategy to strengthen Saudi Arabia’s food security and meet rising demand with improved efficiency.
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