NADEC, Hilton Foods to set up JV for red meat processing
National Agricultural Development Co. (NADEC) signed an agreement with the UK-based Hilton Foods Ltd., to establish a joint venture (JV) - as a limited liability company - in which NADEC will hold a 51% stake.
Hilton Foods Ltd. is fully owned by Hilton Food Group Plc.
In a statement to Tadawul, NADEC said that the shareholders' agreement includes several terms and conditions governing the establishment, management, and operation of the company and its business between the two parties.
This strategic partnership represents a significant step for NADEC in expanding its offerings of locally sourced protein (red meat) products. Under this 10-year agreement, the joint venture will operate NADEC's boning and retail packing operations at its project in Haradh region to provide packaged local red meat products within the Kingdom of Saudi Arabia.
Additionally, this agreement serves as a prelude to other related service agreements aimed at ensuring a sustainable supply chain to meet the needs of all consumer segments to operate within a specified timeframe and under clear supply terms, exclusively for NADEC in Saudi Arabia and the GCC and it is expected to enhance operational efficiency and reduce costs by adopting global best practices in supply chain management.
This strategic partnership aligns with NADEC's commitment to Vision 2030 initiatives and its efforts to strengthen food security in the Kingdom by enhancing local production capacities and delivering high-quality local protein (red meat) products with diverse options for all consumer segments, the statement added.
Meanwhile, NDEC noted that Hilton Foods is one of the world's leading companies in the protein (red meat) sector, offering high-quality meat, seafood, and vegan and vegetarian food products. The company operates through 24 technologically advanced facilities for food processing, packaging, and logistics services, serving over 19 markets across Europe, Asia, the Pacific, and North America.
NADEC further confirmed that there are no related parties included in this agreement, stating that any material developments in this regard will be announced in due course.
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