First Mills to upgrade A&B milling units in Jeddah plant at SAR 98 mln

Logo of First Mills

First Milling Co. (First Mills) signed a new contract with Buhler AG, one of the leading manufacturers of milling equipment in Switzerland, to purchase two new flour mills to ramp up the existing capacity of mills A and B in its largest plant in Jeddah at a total cost of around SAR 98 million.  

The new project, according to a statement to Tadawul, will allow First Mills to increase its production capacity and continue providing the highest quality products to its customers. 

The wheat milling capacity of Mill A will be upgraded by 83% to 550 tons per day (t/d) from 300 t/d currently, while the milling capacity of Mill B will be increased by 22.2% to 550 t/d from 450 t/d, the statement said.  

The company obtained approval from the General Food Security Authority (GFSA) for the capacity upgrade for both mills.  

Construction of the project will begin in the second quarter of 2024 and will be financed from the company’s resources.  

Mill A’s production capacity ramp-up is expected to be completed in Q4 2024, with Mill B likely in Q4 2025. 

Pilot production will extend for one month for each unit, and the project will likely have a positive impact on growth and operating efficiency. 

Meanwhile, the relevant financial impact will likely appear upon commissioning Mill A in Q4 2024.

The deal included no related parties, and the company will reveal any relevant updates in due course, the statement added.