Tanmiah Food Company (Tanmiah) said its wholly owned subsidiary, Desert Hills Veterinary Services Company (DHV), has signed an agreement with London-listed agro tech  company MHP SE to establish a joint venture to boost Saudi Arabia's food security and self-sufficiency in poultry products.

The joint venture will invest more than 200 million Saudi riyals ($53.32 million) in farming operations with the capacity of more than one million parent stock expected to produce 175 million hatching eggs annually, a modern hatchery and a poultry feed mill, the company said in the Saudi stock exchange.

DHV will hold a 55 percent stake, while MHP will own a 45 percent stake in the joint venture.

The new company is subject to the necessary regulatory approvals, including the approval of the General Authority for Competition and other regulatory clearances.

In February 2023, Tanmiah announced plans to invest 4.5 billion riyals by 2030 after signing four memorandums of understanding to improve sustainable food security and production.

(Writing by D Madhura; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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