First Mills completes Mill A expansion, plans new grinding unit

Logo of First Milling Co. (First Mills)

First Milling Co. (First Mills) completed the expansion and modernization of Mill A, increasing its production capacity as planned, according to a statement to Tadawul.

The upgrade, First Mills explained, raises Mill A’s output from 300 tons per day to 550 tons per day, boosting the Jeddah plant’s total daily grinding capacity to 3,050 tons, making it the company’s largest facility.

The financial impact of this expansion is expected to appear in the fourth-quarter 2024 results, the company added.

For more news and details on the projects

The company’s board of directors approved amending the expansion and upgrade plan for Mill B at its Jeddah plant, initially scheduled for completion by late 2025. Aligning with its strategic expansion goals, First Mills decided to replace the planned upgrade with the purchase of a new flour-grinding unit (Mill C) as an additional milling unit at its Qassim plant.

The new mill will enable the addition of new production capacity, supporting the company's continued efforts to provide high-quality products to its customers and expand into promising geographic areas.

The new project will add 600 tons/day to Qassim plant’s current wheat milling capacity, representing a 66% increase to 1,500 tons/day.

The company obtained the approval of the General Food Security Authority (GFSA) on this production capacity increase. The project is expected to commence in Q1 2025, pending regulatory approvals.

The total expected cost of the project is approximately SAR 123 million. It will be financed through Shariah-compliant banking facilities, available cash reserves, and other funding programs, including surplus funds initially allocated for the Mill B upgrade at the Jeddah plant, First Mills said.

Construction works are expected to be completed in Q2 2026, with the financial impact starting from Q3 2026. Trial operations are set to begin in Q2 2026, lasting approximately 60 days, followed by commercial production at the end of Q2 2026.

The project’s contractor is Buhler AG, a leading Swiss-based manufacturer of flour mills. First Mills confirmed that there are no related parties involved.

These expansions align with the company’s growth strategy to increase production capacity, strengthen market leadership, and meet rising demand. The upgrades will enable the company to expand into promising geographic areas, attract new customer segments, and deliver enhanced value to shareholders.