ALMARAI BEGINS PARTIAL OPERATONS OF POULTRY EXPANSION PROJECT

In reference to Almarais announcement on Tadawul, dated June 21st 2011, regarding its strategic investment in the Poultry market, Almarai is pleased to announce that, during the course of the first half 2013, the partial commissioning of its Poultry expansion project has gradually started.

As result of the above, Almarai announces that the partial commercial commissioning of farming facilities as well as the first two, of three planned, production lines, have effectively started production. The initial production runs have successfully passed all quality tests, allowing for use of the facility for commercialization

This projects span is large and complex and is composed of various components from parents farms, hatcheries, broiler farms, three feed mills to a new poultry processing plant as well as related utilities and services. In parallel to the commissioning of both poultry farming facilities and the poultry processing plant, Almarai is also expanding its poultry distribution capabilities.


With this major milestone completed, over the next 12 months a gradual increase in the designed capacity will take place. The full potential of the investment will be realized through additional volumes, up to target of 200 million birds per annum at project completion, compared with a capacity of 25 million birds in the old poultry project.

It is expected that this production and commercialization volume ramp up will have a gradual positive impact in the cash flow generation of the company starting in 2014.