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Almarai office
Almarai Co.'s board of directors, on Dec. 14, approved the investment plan to enter the branded local beef segment, the Saudi Arabian dairy producer said in a bourse filing.
The plan will enable Almarai to offer its consumers with high-quality local meat, the statement added.
The plan will be achieved through leveraging the company's existing young cattle supply to the market and route to market infrastructure.
The move entails an initial investment of SAR 250 million, financed from Almarai's operating cashflows, to build a new end-to-end production plant, from slaughterhouse to butchery to deliver retail ready packaged branded meat.
The plan is subject to approval by various regulatory authorities and the expected time frame of this investment is 24 months from the date of final regulatory approval.
The move will expand the firm's product offering and contribute to the food security agenda as per the Kingdom's Vision 2030.
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