Wafrah expects deal with Italy’s Pavan to be concluded by Q4 2024

Logo of Wafrah for Industry and Development Co.

Wafrah for Industry and Development Co. expects the contract with Italy's Pavan Group for supplying long-cut pasta and nested pasta production lines to be concluded by Q4 2024 instead of June 2024, with no change in cost, according to a statement to Tadawul.

The deal is part of Wafrah’s plan to modernize and automate its production lines, the statement added.

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The company attributed this to the delay in receiving equipment from the supplier, the delay in completing installation, and the need to finalize the relevant electrical network works.

The financial impact of the delay will be reflected in the financial statements from the first half of 2025, Wafrah noted.

Wafrah signed in November 2022 a deal with Pavan, owned by the German engineering group GEA, to supply two production lines for long-cut and nested pastas at a value of €9 million (SAR 35 million).

The long-cut pasta line will have a production capacity of 2,100 kilograms per hour, while the nested pasta line will have a capacity of 1,000 kilograms per hour, provided that the delivery and commissioning take place within 15 months from the contract’s signing date.