Saudia Dairy and Foodstuff Company (SADAFCO) announced on Tuesday the start of construction of a new sales depot, covering a total area of 8,009 square metres, in Makkah’s industrial city. 

The contract was awarded to Rafic Abdulqadr S. Kriedie for General Contracting Co, the company said in a press statement, adding that that the estimated cost of the project is approximately 27 million Saudi riyals ($7.2 million).

The new depot is in line with Jeddah-headquartered company’s growth strategy and would be fully financed by company’s internal resources, the statement said.

It added that the expected completion date is the first quarter of the next fiscal year.

The company currently operates 20 depots in Saudi Arabia and four more in Bahrain, Jordan, Qatar and Kuwait.

Patrick Stillhart, CEO, SADAFCO said: ““We currently operate over 500 sales routes throughout the region. As we look to strengthen our market presence and growth path in the industry, we are always asking ourselves how we can do things better and ways we can enhance our value chain. The new warehouse will certainly have an overall positive impact on SADAFCO performance, providing solutions that would lead to future cost savings, operational efficiencies and development opportunities,” he added.

(Writing by SA Kader; Editing by Anoop Menon)

(anoop.menon@lseg.com)