Today the board of directors of Saudi Fisheries Co. (Alasmak) gave the go-ahead for the establishment of an aquatic feed factory.
The aquafeed mill will be locate at the site of their main shrimp and fish processing plant in Al Huraidha, Asir Province.
The feed mill will have an initial production capacity of 20 tonnes per hour, the equivalent to 96,000 tonnes per annum. The feed produced will help to support the fish and shrimp farming operations of the company.
With the new feed mill, the company is looking to reduce production its production costs by up to 30%, and will also allow the company greater control on the quality of their fish feed, as well position the company to take advantage of subsidies provided by the state.
A portion of the company's rights IPO issue proceeds will be used in financing in the establishment of this plant.
A open-water cage fish breeding farm of 5,000 tonnes per annum capacity, was also approved at the board meeting.
