Food and drink firm says retail unit to set up centre at King Abdullah Economic City
Saudi food and drink manufacturer Savola Group said on Monday that it was to build a $106m distribution centre in the Gulf kingdom.
Its subsidiary Al Azizia Panda, 74.4 percent owned by The Savola Group, will establish the retail operation at King Abdullah Economic City.
Panda will invest SR400m to establish the centre on a land area covering 200,000 square meters in Zone B of the first phase of KAEC's Industrial Valley and will be self-financed by the company, a statement said.
Savola Group managing director, Dr Abdulraouf Mannaa, said the expansion would "enhance the logistical capabilities of the company reflecting positively on the sales and distribution activities for Panda".
Savola Group operates in three core sectors - food, retail through Al Azizia Panda supermarkets and hypermarkets, and plastics.
The group also owns 29.9 percent of Al-Marai fresh diary company, 49 percent of Herfy foods & restaurant chain, and 29.9 percent of Kinan International real estate.
The Group previously posted a record net profit from operations for the year 2011 amounting to more than SR1bn, and is forecasting net income of SR1.2bn this year.