SAUDI ARABIA – Tanmiah Food Company, a producer and supplier of poultry and meat products has signed a shareholder agreement between its wholly-owned subsidiary, Desert Hills Veterinary Services Company Limited (DHV) and MHP SE, a leading international food and agrotech group.
The partnership aims to bolster food security and self-sufficiency in Saudi Arabia marking a pivotal moment in Saudi Arabia’s efforts to enhance its poultry production capabilities.
Building on the foundation set by the Memorandum of Understanding signed earlier this year, the collaboration between DHV and MHP SE will see an investment of over SAR 200 million in farming operations.
This investment will encompass facilities capable of housing more than 1 million parent stock, with an anticipated annual production of approximately 175 million hatching eggs.
Additionally, the joint venture will include a state-of-the-art hatchery and a poultry feed mill. DHV will hold a majority stake of 55%, with MHP holding the remaining 45% stake in this venture.
“Our collaboration with MHP signifies more than just a partnership; it represents our commitment to strengthen Saudi Arabia’s food security framework,” Zulfiqar Hamadani, CEO of Tanmiah Food Company, said.
“Utilizing our local knowledge combined with global best practices, our portfolio of best-in-class products, services, and solutions demonstrates our commitment to our customers, partners, and the broader objectives of Vision 2030.”
According to Dr. John Rich, Executive Chairman of MHP SE, the partnership aligns with the company’s vision to integrate international expertise with local insights ensuring that Saudi Arabia’s food security targets are met.
“Our collective strengths will catalyze transformative advancements in the poultry sector, fostering innovation and setting new benchmarks for excellence,” he noted.
Ahmed Bin Sharaf Osilan, Executive Board Member and Managing Director of Tanmiah Food Company added that the partnership with MHP is a strategic step to delivering sustainable value to our stakeholders and making significant strides towards Vision 2030.
“As we work towards boosting food security and self-reliance in Saudi Arabia, we are building facilities that are critical in the entire poultry ecosystem in Saudi Arabia, increasing non-oil GDP private sector contribution, local employment opportunities, and knowledge transfer.”
The signing of the shareholder agreement represented a pivotal moment in the establishment of the joint venture company.
However, it is contingent on securing the necessary approvals, including clearance from the General Authority for Competition of Saudi Arabia and other relevant jurisdictions.
Additionally, the partnership between Tanmiah Food Company and MHP SE is set to play a crucial role in enhancing food security in Saudi Arabia, demonstrating the commitment of both entities to the country’s Vision 2030 goals.
With substantial investments and a shared vision, the collaboration promises to usher in a new era of self-sufficiency in poultry production, contributing to the nation’s economic growth and stability.
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