ADX-listed Agthia signs lease deal with Abu Dhabi Ports to expand its facilities

Abu Dhabi Ports and food and beverage company Agthia Group have signed a lease agreement aimed at expanding the Group’s existing ‘Grand Mills Flour and Animal Feed’ facilities at Zayed Port.

The new agreement was signed by Captain Mohamed Juma Al Shamisi, Chief Executive Officer of Abu Dhabi Ports, and Iqbal Hamzah, Chief Executive Officer of Agthia Group, at Abu Dhabi Ports headquarters.

The contract between the two parties incorporates a 25-year agreement for a 85,700m2 plot of land, which when fully developed by Agthia will include dedicated bulk grain silos, logistics warehousing and onsite bagging facilities.

The expansion in capacity will allow the Agthia Group to increase its current capacity of 930,000 tonnes per annum to 1.5 million tonnes when fully developed.

Captain Mohamed Juma Al Shamisi said: “This agreement is an important addition to our list of partnerships that will contribute towards driving the investment, growth and development of the trade and maritime sectors. This expansion undertaken by Grand Mills, a subsidiary of Agthia, is an important economic boost that will support the growth and progress of the food and beverage sector, which will cater to the needs of the local consumers.”

Iqbal Hamzah, Chief Executive Officer of Agthia Group, said: “Our current production capacity utilisation rate at Grand Mills is at around 90% levels. When combined with our business growth projections, this necessitates an expansion in both our milling and storage capacity beyond 2017. In this regard, Agthia has already started undergoing the construction of an additional 50,000-ton capacity grain silos on Abu Dhabi Ports’ existing plot. This agreement will secure supplementary land essential for future expansion right adjacent to Agthia’s current facilities.”

Listed on Abu Dhabi Securities Exchange, Agthia shares dropped 20 fils or 2.6 per cent on Wednesday to Dh7.50.

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