Middle East Food Solution Company (MEFSCO), a joint venture between Arabian Agricultural Services Company (Arasco) and Cargill, is planning to set up a plant to produce fructose, glucose and starch products in Saudi Arabia.
In this regard, Arasco and Cargill have entered into an agreement to set up first joint venture for the production of starch and its derivatives of sweeteners in order to meet the demands of GCC, Yemen, Iraq and Jordan.
After the agreement is finalized, Cargill will own 20% stake in the joint venture, whole Arasco will take the 80% stake.
Arasco is also investing $120m for expansion and tripling of production to grind 350,000 tons of corn in its first stage.
During the second phase of investment, Arasco expects the expansion to reach a million tons in order to fulfill market needs in the region and export outside GCC.
The agreement is yet to receive regulatory approvals.
MEFSCO CEO Ziad Al-Sheikh has confirmed that the plant expansion is in final stages with the introduction of new production volumes in the second half of the year providing global manufacturing standards, providing technical and development solutions.
Saudi Industrial Development Fund has agreed to fund the starch production plant, which will be located in Al-Kharj.
Arasco CEO Dr Abdulmalik Alhusseini said that the newly formed company would help generate employment of Saudi graduates with specialization in technology and engineering.
