Bahrain’s only mill that caters to the majority of local flour needs is planning to build a new factory in a new location at a multi-million dinar investment.

Established in 1970, Bahrain Flour Mills Company also known as Al Matahin, currently operates a mill in Mina Salman with a capacity of around 520 tonnes of flour per day.

The company’s chairman Basim Al Saie told the GDN on the sidelines of the annual general meeting of shareholders yesterday that the company will design the new mill this year with the site for the factory already identified.

“The current location of the mill has become constrained so we had to look for a new site which has been identified and we are in discussions to finalise the agreement and this year we hope to start the process of designing the new mill that will be a landmark project for the country.”

Mr Al Saie explained that the new mill is a national food security initiative and will be built to meet the kingdom’s flour needs for the next 30-40 years.

He added: “The new site chosen allows us room to add complementary services to what we do today.”

Boasting advanced technology it will allow Al Matahin to diversify its product range.

More details about the project including the location, size and cost, will be revealed in due course, the chairman added.

Al Matahin uses imported wheat to produce various types of flour like all-purpose, pizza, and whole wheat flour, as well as other grain products like jereesh and semolina.

An additional milling unit has started operating at the factory since late last year, the chairman said at Bahrain Bourse’s Business Centre, where the AGM was held.

The new unit cost BD5.7 million to build and was expected to boost the mill’s capacity by 100 tonnes per day, the GDN had reported last year.

Alongside physical expansion, Al Matahin is embracing digital solutions. A new ERP system is in place, and an e-commerce platform replaces the prior paper-based coupon system.

“This lets us understand our customers better and deliver what they need efficiently,” Mr Al Saie said, aiming for a more satisfying customer experience.

The new mill and digital initiatives follow three completed strategic plans focused on capacity expansion and system upgrades. Backed by Bahrain’s sovereign wealth fund Mumtalakat, the company’s commitment to innovation positions it for a strong future, he added.

The meeting saw shareholders approve cash dividend at the rate of 25 fils per share (or 25pc of the paid-up capital) totalling BD620,620.

For the year ended December 31, 2023, the company has reported a 76 per cent jump in net profit at BD2,501,179 versus BD1,422,601 for 2022.

Al Matahin generated sales of BD7,677,225 in 2023.

The company’s net income for 2023 increased compared to 2022 due to two main factors. First, they achieved record sales of subsidised products. Second, the market value of their equity investments and other income sources also increased.

 

Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).