Saudi MEFSCO opens $167.4mln expansion program in Al-Kharj

Saqr bin Issa Al-Dajani, deputy mayor of Al-Kharj, launched the program with an investment reaching SR630 million ($167.4 million).

The project was initially supported by the Saudi Industrial Development Fund (SIDF) to increase the production of corn starch and its allied products such as glucose, fructose and crude corn oil. The expansion is expected to yield increased production to serve the local as well as the regional markets.

President of MEFSCO Ziyad Al-Sheikh said the increased production will serve the local market as well as promote more Saudi exports to the Middle East. He added that the expansion program is in line with the Saudi Vision 2030, which is aimed at diversifying the Kingdom’s economy to meet with global standards.

Describing it as a novel project, Al-Sheikh said it is designed to produce starch and sweeteners under the Saudi-US partnership represented by the Saudi company ARASCO and the American company Cargill.

Several officials from the public and private sectors and representatives from the US Embassy attended the program.

The project is aimed at transferring modern technologies and developing local human resources for services such as engineering, marketing, sales, logistic support and food development services.

Abdulmalik Alhusseini, CEO of ARASCO, said the expansion program would help grind 350,000 tons of corn and the capacity is expected to exceed one million tons during the coming years. He also said the plant is expected to produce corn sugar (fructose) which would cater to the growing needs of the local and regional markets.

Besides vast experience in production, Alhusseini pointed out that ARASCO and Cargill Foods METNA are fully conversant with investment and logistics programs.

“Exchanging experiences, transferring modern technologies and sharing of international experiences would help reach the main goals of the Kingdom to attain food security and promote economic diversification in Saudi Arabia,” Alhusseini said.

Regional Managing Director Murat Tarak??oglu said the Kingdom has created a conducive climate to attract investments from international companies. “By partnering with ARASCO, we are reaping the fruits of the Kingdom’s efforts to increase local production to meet the needs of the Saudi food production industry.”