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SADAFCO headquarters
Saudia Dairy and Foodstuff Co.’s (SADAFCO) board of directors approved, on Feb. 16, authorizing the executive management to proceed with the construction of a new depot in Makkah at an estimated cost of nearly SAR 27 million, it said in a statement to Tadawul.
The new facility will be built on the land leased from Saudi Industrial Property Authority (MODON) for a period of 20 years from May 3, 2020, on a total area of 8,009 square meters (sqm) in Makkah Industrial City. It will be financed by company's internal resources.
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 construction is expected to begin in the first quarter of the fiscal year ending March 31, 2023, SADAFCO added, forecasting the project to be complete in the first quarter of the fiscal year ending March 31, 2024.
Pilot and commercial operation are scheduled to start in the first quarter of the fiscal year ending March 31, 2024, with one-month trial operations.
The relevant financial impact is expected appear starting from the second quarter of the fiscal year 2023.
The project has not been awarded to date, and the award will be disclosed later, SADAFCO said, noting that any material developments will be announced in due course.
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