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Logo of National Agricultural Development Co. (NADEC)
National Agricultural Development Co. (NADEC) completed the procedures of establishing a limited liability company for potato seed production and propagation in the Kingdom under the name of “National Seeds Production Co.”.
In a statement to Tadawul, NADEC pointed out that it signed an amendment to the current partnership agreement for the entry of a new partner alongside Leha Agricultural Production Co.
The new partner is HZPC Holland B.V., a foreign technical partner, by acquiring the shares of Leha as stipulated in the concluded agreement.
The ownership percentage of NADEC remains unchanged at 51%, while Leha will hold 39% and HZPC (10%).
National Seeds Production signed a service agreement with HZPC to provide construction and operation services for seed potato production and propagation in exchange for specific fees.
The services include supporting and supervising project designs and works related to production, classification, and storage of potato seeds, as well as conducting studies and experiments within the Kingdom to improve the production of specific potato varieties.
The scope of work also includes training NADEC’s employees and enhancing their technical and operational capabilities.
Established in 1898 in the Netherlands, HZPC is one of the leading companies in the global market of potato seed production.
The financial impact of the deal and any material developments in this regard will be announced in due course, the statement noted.
In January, NADEC signed a partnership agreement with Leha Agriculture to establish a limited liability company to produce potato seeds and multiplicate its production in the Kingdom, Argaam earlier reported.
The new JV, which will be 51% owned by NADEC, will operate with SAR 5 million capital.
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