Modern Mills Company invests US$40M in new Al-Jumum feed mill expansion
With an annual production capacity of 422,000 metric tons, the new plant aims to cater to both poultry and livestock feed.
SAUDI ARABIA – Modern Mills Company (MMC), a leading milling and Nutrition Company and a key contributor to Saudi Arabia’s food security, has announced the signing of a supply agreement for production lines at its upcoming animal feed factory in Al-Jumum, Makkah region.
The supply agreement was signed on March 17, 2025.
The investment, valued at SAR 150 million (US$40 million) and approved by MMC’s board in December 2024, aims to establish a facility with an annual production capacity of 422,000 metric tons, catering to both poultry and livestock feed.
The new plant is expected to commence commercial production in the fourth quarter of 2026, subject to necessary regulatory approvals.
The expansion is part of MMC’s broader strategy to enhance its production capabilities and support Saudi Arabia’s food security initiatives under Vision 2030.
As demand for high-quality animal feed continues to rise, driven by increasing demand for meat and dairy products, MMC is positioning itself as a leading supplier in the region, leveraging innovation and expertise in milling and nutrition.
In 2024, the market was valued at USD 6.5 billion and is projected to reach USD 10.8 billion by 2033, reflecting a compound annual growth rate (CAGR) of 5.32% during 2025-2033.
The country’s total compound animal feed consumption stood at approximately 3.47 million tons in 2022, and it is projected to reach around 5 million tons by 2030.
Modern Mills Company seizes this opportunity to reaffirm its commitment to continuous development and growth in producing the highest quality Animal feed to meet market demand.
The production expansion follows the company’s successful listing on the Saudi Exchange (Tadawul) on March 27, 2024, under the ticker symbol ‘2284’.
According to the company, the milestone marked the very successful conclusion of its SAR 1,178 million (US$314 million) IPO following robust demand from both institutional and retail investors, with coverage of approximately 127x and 21.9x, respectively.
The Company’s offering comprised of 24,549,600 shares, representing 30% of its issued share capital, with 90% of the Offer shares allocated to institutional investors and 10% to retail investors. The final Offer Price was set at the top of the price range at SAR 48 per share.
The book-building process saw robust demand from reputable local, regional, and international institutional investors and generated an order book of SAR 150 billion (US$40 million) , resulting in a subscription coverage of approximately 127x of the total offered shares.
The number of Offer Shares allocated to the Individual Investors’ tranche was 2,454,960, representing 10% of the total offering.
Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
