Work to begin at Saudi Arabian flour mills prior to privatization

by Susan Reidy
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Saudi Grains Organization
Saudi Grains Organization, formerly Grain Silos and Flour Mills Organization, upgraded two of its mills in 2010-11. 
Photo courtesy of ASM Saudi Arabia.
 
RIYADH, SAUDI ARABIA — In anticipation of privatization later this year, work has started at four flour mills currently state-owned and managed by the Saudi Grains Organization (SAGO), according to a statement Jan. 1 on the agency’s web site.                

Governor Ahmed Bin Abdulaziz Knight said the agency took into account the smooth transition between the public and private sectors without affecting the daily production and sales of flour.

In November 2015, the Saudi Council of Ministers approved the privatization of the country’s nine mills and establishment of four milling companies. The companies will serve as clients of the government to process and distribute wheat flour for fees to government-approved customers at agreed subsidized prices.

The nine flour mills have a combined daily milling capacity of 12,630 tonnes of wheat and process about 3.3 million tonnes of wheat annually. 
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