CASABLANCA, MOROCCO — Forafric Global PLC, a vertically integrated agribusiness serving Africa, plans to expand existing mills and construct new mills to expand its wheat and durum processing capacity.
Its fully-owned subsidiary, Forafric Maroc, has entered into an agreement with Alapala Foreign Trade LLC to extend three existing mills and construct three new mills.
The expansion is expected to increase wheat and durum processing capacity by 2,370 tonnes per day over the next 30 months. Forafric Maroc’s present crushing capacity represents 2,420 tpd. The global cost of the expansion, including all components, buildings, equipment and working capital is approximately one billion Moroccan dirhams ($101 million).
“We have improved our processes, lowered our cost basis and increased market penetration over the last four years,” said Mustapha Jamal Eddine, chief executive officer of Forafric Maroc. “Teaming with Alapala will enable us to significantly increase output and take our business to the next level. Leveraging synergies will help us to further lower our cost basis and provides an entry into the dynamic Moroccan market.”
Gorkem Alapala, vice chairman of the board of Alapala Holdings, added, “We are pleased to have the opportunity to work with Forafric Maroc on its program to enter a new market and significantly increase its production output. Together we will deploy our innovative technology to further develop the milling industry in Morocco.”
Forafric is a leading agribusiness player in Africa with activities in Morocco and Sub-Saharan Africa. It is a milling industry leader with a complete range of flour and semolina, and secondary processing products such as pasta and couscous. The group operates 12 industrial units, and two logistics platforms.