Saudia Dairy and Foodstuff Company (Sadafco) said it is building two new warehouses in the cities of Jeddah and Tabuk as part of its expansion plans in the kingdom.

The projects, which are forecasted 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, according to a company statement.

Construction work on both the projects has already started and the one in Tabuk will be completed by the end of this year, while the Jeddah warehouse will be ready in 2018, it stated.

“Developing and maintaining our new warehouses across the kingdom is an important element in the value chain of Sadafco. Our commitment to constantly deliver an outstanding level of service excellence to our customers, undoubtedly, impacts our robust performance in the market as well as influencing results positively,” remarked its CEO Wout Matthijs.

“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 stated.

“The new warehouses will provide long-term infrastructure solutions throughout the value chain, resulting in future cost savings, operational efficiencies and growth opportunities,” remarked Wout.

"Further updates on commencement, completion date of the projects and its progress will be announced as and when they occur," he added.

Based in Jeddah, Sadafco operates sales and distribution depots in 24 locations across Saudi Arabia,  Bahrain, Jordan and Kuwait. Saudia products are also exported to several countries in the Middle East and North Africa (Mena) region.

The company currently operates three ISO22000:2005-certified factories in Saudi Arabia, two in Jeddah and one in Dammam. All three factories also have ISO14001 and OHSAS18001 accreditation.-TradeArabia News Service