REG - MHP SE - MHP and Tanmiah - announcement of a partnership

MHP SEAnnouncement

16/02/2023 14:00

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RNS Number : 1921Q  MHP SE  16 February 2023

 

Tanmiah Food Company partners with international food and agrotech leader MHP
Group to boost Saudi poultry production

 

Riyadh, 16 February 2023 - Tanmiah Food Company (TADAWUL: 2281, "Tanmiah" or
"The Company"), an established market leader in the provision of poultry and
other meat products, today entered into a Memorandum of Understanding with
MHP, the leading European producer of poultry. The agreement is the first step
in establishing a joint venture between Tanmiah's wholly owned subsidiary,
Desert Hills for Veterinary Services Company Ltd and MHP SE (LSE: MHPC,
'MHP'), the parent company of the leading international food & agrotech
group headquartered in Ukraine.

 

Supported by the government of Saudi Arabia, and in line with the food
security goals of Saudi Vision 2030, the memorandum sets out the principles of
establishing a joint venture with the aim of accelerating efforts to close the
existing production gap in KSA's domestic poultry sector.

 

The joint venture's primary focus will be developing and operating poultry
breeding facilities and includes the establishment of a greenfield hatchery in
Saudi Arabia to hatch 108 million hatching eggs per annum. It will also invest
in feed milling facilities with the target of producing 137 thousand tonnes of
feed per annum.

 

The initiatives will be primarily funded by the Agriculture Development Fund
of Saudi Arabia. MHP is set to provide a wide spectrum of industry expertise
across the value chain to capture the long-term opportunities and design the
best-in-class facilities fully adapted to local market conditions.

 

The establishment of the joint venture company remains subject to necessary
regulatory approvals including the clearance by the General Authority for
Competition of Saudi Arabia and other applicable authorizations.

 

 

 Zulfiqar Hamadani, CEO of Tanmiah, said: "The new partnership with MHP is
yet another important step, demonstrating our resolve to contribute towards
KSA's poultry self-sufficiency whilst reinforcing our pioneering role in
supporting the Kingdom's food security and self-sufficiency objectives. In
addition, as Europe's largest poultry producer, MHP brings a wealth of
industry expertise that will advance Tanmiah's production capabilities and
efficiencies, whilst enhancing our sustainability agenda."

 

Dr John Rich, MHP SE Executive Chairman, added: "This memorandum represents an
important milestone in MHP's international strategy. I am confident that
Tanmiah's excellent operational track record in combination with MHP's
industry-leading poultry expertise can bring transformational results to the
Kingdom on their way to achieving the food security goals of 2030 Vision. The
steady deepening of the relationship between MHP and Saudi Arabia is an
important part of our long-term commitment to the region, and we continue to
seek opportunities to make the best use of our expertise to improve food
security around the globe. The agreement also brings closer together the
peoples of Saudi Arabia and Ukraine."

 

Tanmiah is on track to achieving its ambitious growth plans, which include
expanding its production capacity for fresh poultry and further processed
products and developing new and innovative products and services that cater to
the changing demands of domestic and international consumers.

 

Ahmed Bin Sharaf Osilan, Executive Board Member & Managing Director of
Tanmiah, commented: "Our feed and animal health segment has been delivering
solid results over the past few quarters and we have ambitious plans to expand
this business further, and generate sustainable long-term value to all our
stakeholders, including our shareholders. The material investments into this
joint venture, will result in an expansion of our overall capacity, whilst
supporting local job creation and delivering on the Kingdom's strategic vision
for our sector."

 

The signing ceremony was held in Riyadh
(https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.google.com%2Fsearch%3Frlz%3D1C1GCEJ_enGB948GB948%26sxsrf%3DAJOqlzXOaAWRSCkfTAwEaRk-Sq-6trlqtQ%3A1675860219421%26q%3DRiyadh%26stick%3DH4sIAAAAAAAAAOPgE-LUz9U3MKwyMjRV4gAxU3Jy47VkspOt9HPykxNLMvPz9JPzS_NKiiqtkhMLMksScxaxsgVlViamZOxgZdzFzsTBAAC3TonwRgAAAA%26sa%3DX%26ved%3D2ahUKEwi3osno-YX9AhV1olwKHcWLBJsQmxMoAXoFCIgBEAM&data=05%7C01%7Ca.sobotyuk%40mhp.com.ua%7Ca71a77a6e85748068c0608db0ac1c668%7C0eeb54ec50a14ef38bda96b20dcc413c%7C0%7C0%7C638115599876575334%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=cCMSxo8qbN4fONt11c%2FF%2BW0sRl6297xpaqGcoi1CUpw%3D&reserved=0)
 at the offices of the Ministry of Environment, Water, and Agriculture on
February 16, 2023.  Representatives from the Ministries of Investment, and
Commerce, of the Kingdom of Saudi Arabia, Saudi Food and Drug Authority,
Agricultural Development Fund and Saudi Investment Recycling Company also
attended this event.

 

 

 

- ENDS -

 

About Tanmiah Food Company

 

Tanmiah Food Company, established in 1962, is one of the Middle East's leading
providers of fresh poultry, processed poultry, and other processed meat
products, as well as animal feed and health products. It is a publicly listed
company on the Saudi Stock Exchange. It is worth noting that Al-Dabbagh
Holding Group is a partner and founding shareholder of Tanmiah Food Company.
Tanmiah's fully integrated and highly efficient business model includes
production,  processing, and distribution with products sold in Saudi Arabia,
the UAE, Bahrain, Oman, Jordan, and Kuwait. As of 31 December 2022, Tanmiah
operates 108 farms as well as six hatcheries, two feed mills, four
slaughterhouses, and 13 dry and cold storage facilities located in Saudi
Arabia, Bahrain, and the UAE. Tanmiah distributes its products through a
network of wholesalers, retailers, and food service outlets, as well as online
direct to consumers. Sustainability is a core principle at Tanmiah, with
initiatives including planting a million trees by the end of 2025, using
wastewater from its facilities, and turning waste products into fertilizer.
For more information, visit www.tanmiah.com (http://www.tanmiah.com)

 

About MHP SE

MHP SE is the parent company of a leading international food & agrotech
group with headquarters in Ukraine, and production facilities both in Ukraine
and in the Balkans (Perutnina Ptuj Group).

 

 

Ukraine: MHP has the greatest market share and highest brand recognition for
its products. MHP owns and operates each of the key stages of chicken
production processes, from feed grains and fodder production to egg hatching
and grow out to processing, marketing, distribution and sales (including
through MHP's franchise outlets). Complete vertical integration practically
eliminates MHP's exposure to raw material price fluctuations since its grain
production exceeds internal consumption requirements, allowing the Company to
be an important participant in the international commodity trade.  In
addition to cost efficiency, vertical integration also enables MHP to maintain
strict biosecurity and to control the quality of its inputs and the resulting
quality and consistency of its products all the way to the point of sale. To
support its sales, MHP maintains a distribution network consisting of nine
distribution and logistical centers within major Ukrainian cities. MHP uses
its own truck fleet to distribute its products, reducing overall
transportation costs and delivery times.

 

MHP also has a leading grain cultivation business growing corn, soya and
sunflower to support the vertical integration of its chicken production and
increasingly other grains, such as wheat and rape, for sale to third parties.
MHP leases agricultural land located primarily in the highly fertile black
soil regions of Ukraine.

 

The Balkans: Perutnina Ptuj (PP) is a leading poultry and meat-processing
producer in the Balkans, with production sites in four Balkan countries:
Slovenia, Croatia, Serbia, Bosnia and Herzegovina. PP owns distribution
companies in Austria, Macedonia and Romania and supplies products to fifteen
countries in Europe. PP is vertically integrated across all states of chicken
meat production - feed, hatching eggs production and incubation, breeding,
slaughtering, sausage production and further poultry processing.

 

MHP trades on the London Stock Exchange under the ticker symbol MHPC. For more
information, visit mhp.com.ua (https://mhp.com.ua/en/)

 

 

 

 

Contact Information:

 

Tanmiah Food Company

Mr. Hussam Al Shareef, Investor Relations Manager

Tel. +966 114775912

Email: ir@tanmiah.com (mailto:ir@tanmiah.com)

P.O. Box 86909

Riyadh 11632, Kingdom of Saudi Arabia

www.tanmiah.com (http://www.tanmiah.com)

 

MHP SE

Ms. Anastasiya Sobotyuk, IR Director

Tel. +35799767126

Email: a.sobotyuk@mhp.com.ua

Office EB1, 3-7 Arch Bishop Makario III Ave

6017 Larnaca, Cyprus

www.mhp.ua (http://www.mhp.ua) , www.mhp.com.cy

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