Saudia Dairy and Foodstuff Company, known as SADAFCO, has announced the start of construction of a new sales depot in the holy city of Makkah,
The new depot, which will be built at an estimated cost of SR27 million ($7.2 million), is located in Makkah Industrial City and covers a total area of 8,009 square meters; it replaces the existing rented location. The depot is in line with SADAFCO’s strategy to facilitate its growth and strengthen its performance. The project will be fully financed by the company’s internal resources.
With construction beginning in the first quarter of the fiscal year ending March 31, 2023, the project is expected to be completed in the first quarter of the fiscal year ending March 31, 2024. The contract has been awarded to Rafic Abdulqadr S. Kriedie for General Contracting Co. Ltd.
The company’s established sales and distribution network currently serves the Kingdom and the wider region. At present, it operates 20 depots in Saudi Arabia and four more regionally. Upon completion, the new warehouse is expected to deliver significant future cost savings and improved effectiveness in the company’s supply chain. It will also enhance the servicing of cities surrounding the holy city.
Patrick Stillhart, CEO of SADAFCO, said: “We are very pleased to announce the expansion of our facilities with the construction of a new depot in the holy city of Makkah. SADAFCO operates world-class manufacturing facilities in the Kingdom, along with an extensive sales and distribution network that spans across the GCC. Our efforts now are focused on catering to the shifting needs of our consumer base and widening our future product portfolio. The investment on our infrastructure will certainly contribute to that success.”
“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 in what ways we can enhance our value chain. The new warehouse will certainly have an overall positive impact on SADAFCO’s performance, providing solutions that would lead to future cost savings, operational efficiencies and development opportunities,” he added.
Based in Jeddah, SADAFCO is a leader in the UHT milk and tomato paste markets in the Kingdom, with a product portfolio ranging from breakfast cream, cheese, butter to ice cream, among others. Through the diversification of its key product offerings and adopting the use of the best-in-class operating standards, it strives to meet the consumers’ needs and increase shareholder value across the range.
