Al-Marai buys SR119.3m farmland in California

Al-Marai buys SR119.3m farmland in California


RIYADH — Almarai Company announced that it has completed on Jan. 8, 2016, the purchase of 1,790 acres of farm land, worth SR119 .3 million in Blythe, California, US, through its fully owned subsidiary Fondomonte, California Llc. 1,590 acres are currently cultivated within the total land subject to this transaction.

The company said in a statement published Sunday on Saudi Stock Exchange website that ”this transaction forms a part of Almarai’s continuous efforts to improve and secure its supply of the highest quality alfalfa hay from outside the Kingdom of Saudi Arabia to support its dairy business.

It is also in line with the Saudi government direction in this regard. In addition to this purchase, Almarai is committed to invest into the necessary infrastructure, including a bailing system and logistics and transportation equipment necessary for the efficient supply of alfalfa hay from its US-based facility into the Kingdom.” — SPA