The Modern Saudi Mill Company Announces New Animal Feed Production Factory

The Modern Saudi Mill Company (TADAWUL: 2284) has revealed in a statement on the Saudi Stock Exchange (Tadawul) today, Tuesday, that its Board of Directors has approved the establishment of an advanced animal feed production factory in Al-Jamoum, located in the western region of the Kingdom. The new facility is expected to have an annual production capacity of 422,000 metric tons.

The company stated that the implementation of the project is set to begin in the fourth quarter of 2026, following the acquisition of the necessary regulatory approvals. The total cost of the project is estimated at approximately 150 million riyals, which will be financed through a combination of Islamic Sharia-compliant banking facilities, available cash liquidity, and other financing options.

Production at the new facility is expected to begin with a trial phase in the fourth quarter of 2026, lasting one month, before transitioning to full commercial production by the end of the same quarter. The company anticipates that the project will have a positive impact on its financial performance starting from that period.

In its statement, the company emphasized that it has not yet signed contracts with contractors to implement the project, but assured shareholders that any significant updates or developments will be announced in due course. This initiative is seen as a strategic move to meet the growing demand for animal feed in the western region, reinforcing the company's leadership in the sector and aligning with Saudi Arabia's Vision 2030 objectives, particularly in achieving food security and promoting economic sustainability.

In trading, shares of the Modern Saudi Mill Company saw an increase of 1.81%, rising by 0.75 riyals per share, to close the Saudi trading session at approximately 42.10 riyals per share.

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