RELEASE: Tanmiah partners with MHP Group to boost Saudi poultry production

(Information sent by the signatory company).

RELEASE: Tanmiah partners with MHP Group to boost Saudi poultry production

(Information sent by the signatory company)

-Tanmiah Food Company partners with MHP Group, international agri-food leader, to boost Saudi poultry production

RIYADH, Saudi Arabia, Feb. 16, 2023 /PRNewswire/ -- Tanmiah Food Company (TADAWUL: 2281), ("Tanmiah" or "the Company"), a market leader in the supply of poultry and other meat products, today signed a Memorandum of Understanding with MHP, the leading European producer of poultry. The agreement is the first step in the establishment of a joint venture between Tanmiah's subsidiary Desert Hills for Veterinary Services Company Ltd and MHP SE (LSE: MHPC, 'MHP'), the parent company of the leading international food and agribusiness group based in Ukraine.

With the support of the government of Saudi Arabia, and in line with the Saudi Vision 2030 food security objectives, the memorandum establishes the principles of creating a joint venture with the aim of accelerating efforts to close the existing production gap in the KSA national poultry sector.

The joint venture will focus primarily on the development and operation of poultry farming facilities and includes the creation of a hatchery in Saudi Arabia to incubate 108 million eggs per year. It will also invest in feed milling facilities, with the aim of producing 137,000 tonnes of feed per year.

The initiatives will be financed mainly by the Saudi Arabian Agricultural Development Fund. MHP will bring extensive experience across the value chain to seize long-term opportunities and design the best facilities tailored to local market conditions.

The creation of the joint venture remains subject to necessary regulatory approvals, including clearance from the Saudi Arabian General Authority for Competition and other applicable clearances.

Zulfiqar Hamadani, CEO of Tanmiah, said: "The new partnership with MHP is another important step, demonstrating our determination to contribute to the poultry self-sufficiency of the Kingdom of Saudi Arabia, while reinforcing our pioneering role in supporting the goals of the Kingdom's food security and self-sufficiency. In addition, as Europe's largest poultry producer, MHP brings a wealth of industry experience that will improve Tanmiah's production capacity and efficiency, while reinforcing our sustainability programme."

Dr John Rich, Executive Chairman MHP SE, added: "This memorandum represents an important milestone in MHP's international strategy. I am confident that Tanmiah's excellent operating track record combined with MHP's industry-leading poultry expertise can bring transformative results for the Kingdom on its way to achieving the food security goals of Vision 2030. The continued deepening of the relationship between MHP and Saudi Arabia is an important part of our long-term commitment to the region, and we continue to look for opportunities to make the best use of our experience to improve food security around the world. The agreement also brings the people of Saudi Arabia and Ukraine closer together."

Tanmiah is on track to achieve its ambitious growth plans, which include expanding its production capacity for fresh poultry and processed products, as well as developing new and innovative products and services to meet the changing demands of domestic consumers. and international.

Ahmed Bin Sharaf Osilan, Member of the Executive Board and CEO of Tanmiah, commented: "Our feed and animal health segment has delivered strong results in recent quarters and we have ambitious plans to further expand this business and generate long-term sustainable value. for all of our stakeholders, including our shareholders. The material investments in this joint venture will result in an expansion of our global capacity, while supporting local job creation and fulfilling the Kingdom's strategic vision for our sector."

The signing ceremony was held in Riyadh at the offices of the Ministry of Environment, Water and Agriculture on February 16, 2023. Also in attendance were representatives of the Kingdom of Saudi Arabia Ministries of Investment and Trade, the Saudi Food and Drug Administration, the Agricultural Development Fund and the Saudi Investment Recycling Company.,

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