OMAN – A’Saffa Foods SAOG, Oman’s largest fully integrated poultry and processed food producer, has signed a financing deal with Bank Muscat for RO 31.5 million (US$82 million) to finance the company’s expansion plans in the Sultanate.
According to the company, the massive expansion project will double the production capacity of A’Saffa Foods from the current capacity of 20 million birds per annum to 40 million birds per annum.
It will comprise the addition of 10 farms with 90 poultry houses, in addition to a hatchery, feed mill, processing plant, and other utilities.
With an annual production capacity of 40,000 tonnes of chicken meat per annum, the project will have a far-reaching impact on meeting the growing demand of A’Saffa products in the sultanate and beyond; and will also help in the generation of employment opportunities,” said Chairman of A’Saffa Foods Sheikh Rashid Saif Mohammed Al Saadi at the signing ceremony.
“Being market leaders in the Sultanate, A’Saffa Foods has always been committed to proactively improving its performance year on year. Given our robust expansion plans, we will continue to focus on production and operational excellence, brand variation and overall growth and development; while creating long-term value for our stakeholders, and ensuring sustainability in all our operations,” said Dr Nasser Zahir Nasser Al Maawali – CEO of A’Saffa Foods.
The investment will increase the company’s investment in the expansion project to RO 45 million (US$120 million), according to Rafique Chaudhary, the Chief Financial Officer, and will promote food security, increasing exports, stimulate the economy of the country create jobs.
The company believes that with a rising consumer demand for protein, especially chicken, the investment will position it for further growth, while supporting its customers.
According to the USDA, the domestic demand of chicken has more than doubled in Oman from 56,000 tonnes in 2007 to a projected 126,000 tonnes in 2017.