In a move aimed at enhancing its operational processes and securing its raw material supply chains, Modern Mills Food Products Company announced the signing of a strategic agreement to purchase quantities of corn for production and manufacturing purposes. This deal was concluded with Al Ghurair Advanced Trading Company, classified as a related party, reflecting the integration of commercial relationships between major economic entities in the region.
Contract details and financial impact
In an official statement published on the Saudi Stock Exchange (Tadawul) website, the company clarified that the total value of the contract is SAR 21.37 million. This two-month contract aims to ensure the continuity of production at a high level of efficiency. Regarding the financial impact, the statement indicated that the positive results of this transaction will be reflected in the company's financial statements during 2026, demonstrating long-term financial and operational planning.
Transparency and disclosure of related parties
In compliance with the governance and transparency standards followed in the financial market, Modern Mills disclosed the nature of its relationship with the seller. Mr. John Gregory Iossifidis serves as Vice Chairman of the Board of Directors of Modern Mills and is also the CEO of Al Ghurair Investment Group. The latter group owns 100% of Al Ghurair Resources International, which in turn owns 100% of Al Ghurair Advanced Trading. Despite this relationship, the company confirmed that the contract was concluded within the normal course of business and in accordance with prevailing commercial terms, without granting any preferential treatment.
Context of the milling sector and food security in the Kingdom
This move comes at a time when the milling sector in Saudi Arabia is undergoing fundamental transformations and rapid development following the privatization processes in which the Modern Milling Company (formerly the Second Milling Company) played a key role. The company plays a pivotal role in the national food security system, as corn is a fundamental input in many food and animal feed industries, making its provision at competitive prices and from reliable sources a top priority.
Economic and strategic importance
Such agreements are particularly important given the global challenges facing grain supply chains. By collaborating with leading regional companies like Al Ghurair, Saudi companies ensure a stable flow of raw materials, contributing to stable domestic prices for finished products. This agreement also reflects the strength of trade and economic ties between Saudi institutions and their counterparts in the GCC, enhancing regional economic integration and supporting the goals of Saudi Vision 2030 to empower the private sector and increase the efficiency of local production.
