Tuesday, Jan 11, 2011
Gulf News
ten plants will be built at al wathba as part of food security effort
Abu Dhabi Abu Dhabi plans to build 10 wheat grain silos with a combined storage capacity of 50,000 tonnes at Al Wathba in line with the emirate’s food security requirements, it was revealed by Agthia Group’s Chief Executive Officer, Ilias Assimakopoulos, at a news conference.
The silos will be owned by the Abu Dhabi Food Control Authority (ADFCA), built by Musanada, while being managed and operated by Agthia. The silos, which will be located at Al Wathba Mega Production and Distribution Complex, will be operational in 2012.
“We will be buying the wheat from the spot market,” Assimakopoulos said. He also said that Abu Dhabi is subsidising part of the cost of grains to protect consumers.
New hub
Also, there’s a government subsidy on animal feed products. The wheat grain silos will complement the existing 150,000 tonnes capacity grain storage at Port Zayed which has existed since 1978, Assimakopoulos said.
The complex at Al Wathba will serve as Agthia Group’s new production and distribution hub, housing several factories, warehousing and distribution facilities, Assimakopoulos said. “The first project in our new complex will be the Grand Mills flour mill, with a capacity of 400 metric tonnes a day, this will increase our flour production capacity by 50 per cent to 300,000 tonnes a year,” he added. Assimakopoulos said the mill, which will be made of steel, will cost up to Dh50 million to build.
“[The plant]... is set to begin operations in the fourth quarter of this year and the additional capacity will meet the company’s current and future requirements and will ultimately help to improve margins in this business,” he added.
Assimakopoulos said that in late 2010, Agthia announced its entry into the fast growing and high margin frozen baked segment. “This Al Wathba Complex will be home to our new frozen baked products plant.
“The project, set to come online in the second quarter of 2012, is in line with Agthia’s business diversification strategy and provides great potential for regional expansion,” he added.
Assimakopoulos said future plans for the complex include provision for a distribution and logistics centre; sales and operational personnel facilities and provision for other projects Agthia may choose.
Long-term security
Earlier in the day, Rashed Mubarak Al Hajiri, Agthia Group’s chairman, accompanied by Assimakopoulos cut the ceremonial ribbon for the 122,000 square metre Al Wathba site, before proceeding to break ground at the future hub of Agthia’s production and distribution activities to signal the commencement of construction.
“This project embodies Agthia’s wholehearted commitment to producing high quality foods and beverages, and ensuring its availability and supply. This is critical to the long-term security of our nation,” Al Hajiri said.
Agthia’s shares fell 0.93 per cent yesterday on a bearish Abu Dhabi Securities Exchange, closing at Dh2.13.
Supplie picture
Equal responsibility
The silos will be owned by the Abu Dhabi Food Control Authority, built by Musanada and managed by Agthia. The silos, which will be located in the Al Wathba Mega Production and Distribution Complex, will be operational in 2012.
By Himendra Mohan Kumar?Staff Reporter
Gulf News 2011. All rights reserved.
