Saudia Dairy and Foodstuff Company (SADAFCO) has announced the construction of new warehouses in Jeddah and Tabuk.
The projects, which are forecast to have a positive impact on SADAFCO’s profits, have an estimated value of SR162 million ($43.2 million), and will be fully financed by the company’s own resources generated through operations, a statement said.
It added that construction work has already started in Tabuk and Jeddah, and will be completed at the end of 2017 and 2018 respectively.
“Developing and maintaining our new warehouses across the kingdom is an important element in the value chain of SADAFCO,” said Wout Matthijs, CEO, SADAFCO.
“We want to further strengthen our growth path and performance in our industry and our new warehouse will help deliver this, as we will enhance servicing both the eastern and western provinces of the kingdom.”
He said Saudia enjoys market leadership in Saudi Arabia in tomato paste and ice cream and the brand holds second place in the milk category.
Based in Jeddah, SADAFCO operates sales and distribution depots in 24 locations across Saudi Arabia, Qatar, Bahrain, Jordan and Kuwait while Saudia products are also exported to several countries in the MENA region.
“The new warehouses will provide long-term infrastructure solutions throughout the value chain, resulting in future cost savings, operational efficiencies and growth opportunities,” added Wout.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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