Fourth Milling Co. invests US$70M in new flour, feed mills in Al-Kharj

SAUDI ARABIA – Fourth Milling Co. has signed a civil works agreement worth approximately SAR 265 million ($70.7 million) to begin construction of a major new flour mill and feed plant in Al-Kharj, Saudi Arabia, marking a significant expansion in the Kingdom’s milling and feed production capacity.

Fourth Milling Co., one of the four entities created in 2017 following the privatization of the GFSA’s milling assets, currently operates three mills across Saudi Arabia with the capacity to process 3,150 tonnes of wheat per day and produce 450 tonnes of animal feed daily.

The company plays a key role in supporting the Kingdom’s grain value chain, from flour production for bakeries and food processors to feed supply for livestock operations.

The deal, signed on November 4, covers the construction of factory buildings, warehouses, and supporting infrastructure for the project.

The company confirmed that the investment will fund a 750-tonne-per-day (tpd) flour mill, which will boost its total milling capacity to 1,350 tpd, as well as a new feed mill with a capacity of 240 tpd.

The expansion has already received approval from the General Food Security Authority (GFSA), underscoring its alignment with Saudi Arabia’s national food security and self-sufficiency objectives.

Earlier, on June 23, Fourth Milling Co. signed agreements with leading global and regional suppliers for the provision of milling equipment, machinery, and electrical installations, paving the way for the project’s execution phase.

The company said the project will be financed through Sharia-compliant banking facilities and internal operational cash flows, reflecting a balanced approach to funding that supports sustainable growth.

According to the company, the feed mill is expected to be completed in the second half of fiscal year 2026, while the flour mill is targeted for commissioning in the second half of fiscal year 2027.

Once operational, the facilities will significantly enhance the company’s ability to serve both domestic and regional demand for flour and animal feed products.

The investment comes amid strong financial performance. In its latest quarterly results for the period ended September 30, Fourth Milling Co. reported an 11% increase in net profit year-on-year, driven by higher flour sales volumes.

The expansion project is expected to further strengthen the company’s market position and contribute to the Kingdom’s broader goals of food security and industrial diversification under Saudi Vision 2030.

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