Abu Dhabi-based leading food and beverage company, Agthia Group held a Board Meeting in order to discuss and approve key business decisions, including a greenfield investment in Saudi Arabia.
The Board of Directors approved a $24 million (AED 90 million) investment for the construction of a manufacturing facility for Nabil, one of Agthia’s protein brands, in the city of Jeddah.
According to the company, Capital expenditure (CAPEX) spending is expected to start in the coming months, with the first sales from the new facility expected in the second quarter of 2023.
The company added that “the project, which is in response to strong demand from local customers, will further strengthen Agthia’s footprint in the Saudi Arabia, the Gulf’s largest and one of the fastest-growing consumer markets, and support the company’s strategy of becoming one of the leaders in the Middle East and North Africa (MENA) consumer packaged goods sector.”
Mr. Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, said that, “Agthia’s greenfield investment in the Kingdom of Saudi Arabia would enable significant progress towards our long-term profitability target and our commitment to deliver on our growth strategy to become a regional leader by 2025.”
“Nabil Foods has a well-established business in KSA. This investment will allow us to further drive the growth of our protein vertical while offering the right product quality compliant with local regulations. The site design will also give us the capacity and flexibility to meet future market growth potential and will eliminate any future replacement cost in case of expansions,” commented Mr. Alan Smith, Chief Executive Officer of Agthia Group.
