GACO says dates factory project ‘infeasible’ on operational inefficiency

Logo of GACO

Al Gassim Investment Holding Co. (GACO) said it will shelve the new dates factory project, based on the constituent committee’s report, which proved the project’s infeasibility, according to a bourse filing.

According to the committee’s report, the project requires the use of automatic sorting techniques, without which the company will incur high operating expenses.

GACO inked on May 31, 2018, a 60-day memorandum of understanding (MoU) for the incorporation of a new closed joint stock company at SAR 100 million in capital, to produce and sell Saudi dates, Argaam reported.

In Sept. 2018, the company received an initial draft for the evaluation of its new dates factory site, as the constituent committee was studying and evaluating it.