Industry, Logistics & Shipping

Tanmiah acquires new primary production facility for $38.1m

Tanmiah Food Company’s subsidiary, Agricultural Development Company (ADC) has entered into a contract to acquire a new state-of-the-art primary processing facility for a total value of SR143 million ($38.1 million). 
 
The new primary processing plant is expected to commence production in early 2025, with an initial annual capacity of approximately 37 million birds. 
 
Further upgrades are planned to increase the capacity to approximately 56 million birds per year. The plant will produce the complete range of Tanmiah Fresh Chicken products, boosting the Company’s portfolio of high-quality and innovative food solutions to Food Services and Retail channels. The new plant will also contribute to KSA’s economic growth by creating new job opportunities, supporting local talent, and aligning with the kingdom’s vision for a thriving and dynamic workforce.
 
Minimising environmental impact 
Equipped with advanced waste management systems, the plant also reinforces Tanmiah’s commitment to sustainability by minimising environmental impact and supporting responsible production practices. This investment aligns seamlessly with its vision of driving growth while upholding the highest standards of environmental stewardship and operational excellence. The plant's proximity to Tanmiah’s existing facilities and farms will enhance efficiency and productivity. 
 
Zulfiqar Hamadani, Group CEO of Tanmiah, commented: “Tanmiah has continued to make great strides in successfully executing its strategic expansion plans. This acquisition is in line with our pioneering role in supporting the Kingdom’s food security and self-sufficiency objectives under the Vision 2030 umbrella. 
 
“I am very pleased to announce that this new production facility is equipped with a state-of-the-art waste management system that will enable us to significantly reduce waste and minimise its carbon footprint. The facility also comes with additional land that will be used to plant trees, contributing to the company's sustainability initiatives.
 
Favourable market dynamics
“Tanmiah is building the necessary foundation to capitalise on favourable market dynamics, including population growth, and the increasing popularity of its nutritious, locally produced chicken products. Our highly efficient and fully integrated business model, combined with our increased focus on marketing, sales, and distribution, are positioning us to reach new horizons.”
 
Situated on a vast piece of land, the facility not only enhances Tanmiah’s operational capacity but also underscores its commitment to sustainability. Beyond the plant itself, the expansive land will be utilised for tree plantation, irrigated with treated water from the plant that is processed to the appropriate standards. 
 
This innovative approach promotes a circular economy by maximising resource efficiency, reducing waste, and contributing to a greener environment, all while aligning with its vision of sustainable growth and environmental stewardship, he said.--TradeArabia News Service