Wafrah shares updates on supply deal with Italy’s Pavan Group

Logo of Wafrah for Industry and Development Co.

Wafrah for Industry and Development Co. announced its latest update on the contract with Italy's Pavan Group for supplying long-cut pasta and nested pasta production lines to modernize and automate its factory lines, with completion expected by June 2024.

The delay from the initial timeline was due to factory adjustments for the new lines and delays in equipment arrival caused by changes in maritime transport routes, the company said in a statement on Tadawul.

The financial impact of the delay will be reflected in the financial statements from the second half of 2024.

Wafrah signed a deal with Pavan, owned by the German engineering group GEA, to supply two production lines for long-cut and nested pastas at a value of €9 million (SAR 35 million). The long-cut pasta line will have a production capacity of 2,100 kilograms per hour, while the nested pasta line will have a capacity of 1,000 kilograms/hour, provided that the delivery and commissioning take place within 15 months from the contract’s signing date.