Arabian Mills signs expansion contracts worth SAR 71M

Logo of Arabian Flour Mills Co.

Arabian Flour Mills Co. signed contracts with Bühler AG for its strategic expansion projects, totaling about SAR 71.2 million, covering equipment supply and project supervision in Riyadh and Hail.

The equipment supply contract is CHF 13.735 million (around SAR 65.73 million) and includes specification-compliant equipment and design. The project supervision contract is SAR 5.43 million, covering equipment installation oversight and construction monitoring.

Both contracts run until the projects are fully completed. Expansion plans include a new 800-ton/day flour mill and a 400-ton/day feed mill in Riyadh, plus a 150-ton/day upgrade to the Hail flour mill.

The company expects positive financial impact once the Riyadh mills begin commercial operations and the Hail upgrade is completed. Commercial launches will be announced when ready, with no related parties involved.

Argaam reports total investment for the Riyadh and Hail projects at SAR 461 million: SAR 361 million for the 800-ton/day Riyadh flour mill and 150-ton/day Hail upgrade, raising flour capacity to 5,820 tons/day, and SAR 57 million for the 400-ton/day Riyadh feed mill, lifting feed capacity to 1,000 tons/day.