SADAFCO announces Construction of new Depot in Makkah with cost of SR 27 million

Saudia Dairy and Foodstuff Co (SADAFCO) Board of Directors approved authorizing the Executive Management to proceed with the construction of a new Depot in Makkah on the leased land from Saudi Industrial Property Authority (Modon) for a period of 20 years commencing 10-09-1441H measuring 8,009 sqm in Makkah Industrial City.

The new Depot which replaces the existing rented location is expected to provide long-term infrastructure solutions to both the distribution and logistic operations, resulting in future cost savings and growth opportunities.

The company said that the “Project Start Date will be Q1 of the fiscal year ending 31 March 2023. The total estimated cost of this project will be approximately SR 27 million. This project will be financed by Company’s own resources.”

Expected completion date of the project is the Q1 of the fiscal year ending 31 March 2024 and the Future savings and growth will impact the financial results in the coming periods, while the project completion will impact financially from Q2 of the year 2023.

The expected date for the pilot production of the project to begin is Q1 of the fiscal year ending 31 March 2024. The duration of the pilot production of the project is 1 month.

The expected date for the commercial production of the project              is Q1 of the fiscal year ending 31 March 2024.

Executing Party/Counter Party in the Project/Contract: To date, the project has not been awarded, and this will be disclosed later.

Further material updates on the commencement & completion date of the project and its progress will be announced as and when they occur.