Naqi Water Co. Announces the Purchasing of Machinery the Poultry Sector in the amount of 14,219,000 SAR
| Element List | Explanation |
|---|---|
| Transaction Details | Naqi Water Company announces the signing of contracts to purchase machinery and equipment for the poultry sector. This comes as part of the company's expansion plan for poultry houses to increase production efficiency and automate the egg production cycle and product grading processes. |
| Transaction Amount | 14,219,000 SAR |
| Transaction Conditions | Not applicable |
| Parties of the Transaction | 1. Big Dutchman international GmbH, Germany
2. Prinzen, a Vencomatic Group company, Netherlands |
| Transaction Financing Method | The contract is to be financed internally by Naqi Water without any external funding. |
| Date of Entering Into The Transaction | 2024-06-10 Corresponding to 1445-12-04 |
| Description of Activity of The Asset Subject of The Transaction | Poultry farming equipment for egg production, grading and packaging machines for table eggs, have been acquired for the poultry sector. |
| Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction | Not applicable |
| Transaction reasons | The purchase of these assets is part of the company's plan to expand the production of table eggs and contribute to the food security of Saudi Arabia. This will be achieved by increasing the capacity of producing poultry, as well as enhancing the productivity of table egg production using the latest technology in the field.
The impact of these assets will be reflected in improving the efficiency of poultry farming operations and elevating the quality, safety, handling, and packaging of table egg products. |
| Expected Impact of the Transaction on the Company and Its Operations | The purchase of the mentioned assets has been successfully concluded with the aim of increasing the capacity of the poultry sector by 450% compared to the current actual capacity. This will enable a significant boost in the production capacity of the poultry sector, reaching approximately 165 million eggs annually.
The financial impact of these assets is expected to commence during the first half of 2025. |
| Related Parties | There are no related party engaged in these contracts. |
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