The new joint venture company will acquire Arasco’s existing corn milling facility in Al Kharj and will produce starch based products primarily for the Gulf Cooperation Council (GCC) countries of Saudi Arabia, UAE, Kuwait, Oman, Qatar, Bahrain, as well as Yemen, Iraq and Jordan.
This joint venture will mark Cargill’s first operations in the Kingdom and will build on Cargill’s global capabilities in food ingredients and Arasco’s already proven successful local knowledge and supply chain infrastructure.
The intent is to triple production at the Al Kharj plant to meet the growing demand across the confectionery, juice, bakery and catering segments in the region.
Glucose and starch production capacities will more than double and the product offering will be expanded to include high fructose corn syrup (HFCS) to serve the growing food and beverage industry in the Kingdom of Saudi Arabia.
Once the agreement is finalised, Cargill will take a 20% stake in the joint venture, while Arasco will take a 80% stake and management control. The agreement is subject to regulatory approvals.
Source: Cargill
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