Initial Project Set to Boost Agthia’s Flour Production Capacity by 50%
Agthia Group PJSC, one of the leading FMCG companies in the UAE, held a Groundbreaking Ceremony for the Group’s new Mega Production and Distribution Complex in Al Wathba North - Abu Dhabi, marking a significant milestone in the history of the company. The new complex will serve as Agthia Group’s new production and distribution centre, housing several factories and serving a strategic role in ensuring the UAE’s food security.
Underlining the importance of the event, the ceremony was attended by several dignitaries and officials from the Department of Municipal Affairs – Abu Dhabi, the Abu Dhabi Municipality, and the Abu Dhabi Food Control Authority (ADFCA), as well as high level delegates from the Canadian Embassy.
His Excellency Rashed Mubarak Al Hajeri, Chairman of Agthia Group PJSC, accompanied by Mr. Ilias Assimakopoulos, CEO of Agthia Group, first cut the ceremonial ribbon at the 122,000 sqm 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 work.
Speaking after the Groundbreaking, Agthia Chairman H.E. Rashed Al Hajeri said: “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.”
The Al Wathba Mega Production and Distribution Complex project will be the new site for Agthia subsidiary Grand Mills for Flour and Feed’s new mill, with an initial project of 400 metric tons per day steel structure to be built at a cost of AED 48 to 50 million. The plant is set to begin operations in Q4 of 2011.
Mr. Ilias Assimakopoulos, CEO of Agthia Group, said: “This is truly a proud moment for Agthia Group. The new complex will allow us to expand our production capacity and streamline our operations. The initial flour mill project will enable the Company to meet current and future requirements and will ultimately help to improve margins in this business.”
In addition, the complex will house wheat grain silos for both Grand Mills’ needs and the government of Abu Dhabi food security needs. The silos’ total combined capacity will be 50,000 metric tons, with additional space to increase this capacity in the future. The silos will be owned by the Abu Dhabi Food Control Authority, built by Musanada, while being managed and operated by Agthia. The silos will become operational in 2012.
The complex will also include a 15,000 metric tons per year frozen baked products plant expected to come online by Q2 of 2012. Future plans for the Complex include provision for a distribution and logistics center, sales and operational personnel facilities, and provision for other projects Agthia may choose to embark on.
The construction contract for the first project, the flour mill, was awarded to Alapala, with Abu Dhabi Distribution Company acting as sub-contractor, Urbanism Planning Architecture Consultancy LLC as Alapala’s Architect and Engineering Consultant, and Structural Engineering Company (SEC) as Agthia’s Engineering Consultant.
Construction of the grain silos will be overseen by the Abu Dhabi Food Control Authority (ADFCA) and lead by Musanada..
Agthia can trace its beginnings to 1978, when His Highness the Late Sheikh Zayed bin Sultan Al Nahyan established its first subsidiary Grand Mills for Flour and Feed. The company has since grown into one of the UAE’s largest F&B companies, contributing significantly to the food security of Abu Dhabi and the nation as a whole. Agthia’s business includes four subsidiaries; Al Ain Mineral Water– one of the UAE’s leading bottled water manufacturers and the local producer and distributor of Capri-Sun juices; Grand Mills– manufacturer and producer of high quality flour and animal feed products, Al Ain Vegetable– a leading manufacturer and marketer of tomato paste and frozen vegetables, and Al Ain Food and Beverages (Egypt)- producing and selling tomato paste, frozen vegetable and fruit puree.
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