The National Agricultural Development Company (NADEC) announces the signing of a shareholders' agreement with Hilton Foods to establish a joint venture for processing and packaging of red meat

NadecXHilton

The National Agricultural Development Company (NADEC) is pleased to announce the signing of a shareholders' agreement with Hilton Foods Ltd. – United Kingdom, which is fully owned by Hilton Food Group Plc., a global leader in the processing and packaging of protein products (red meat). The agreement aims to establish a joint venture (Limited Liability Company) in which NADEC will hold a 51% stake in the new company's capital.
The shareholders' agreement includes several terms and conditions governing the establishment, management, and operation of the company and its business between the two parties. This strategic partnership represents a significant step for NADEC in expanding its offerings of locally sourced protein (red meat) products. Under this 10-year agreement, the joint venture will operate NADEC’s boning and retail packing operations at its project in Haradh region to provide packaged local red meat products within the Kingdom of Saudi Arabia.

Additionally, this agreement serves as a prelude to other related service agreements aimed at ensuring a sustainable supply chain to meet the needs of all consumer segments to operate within a specified timeframe and under clear supply terms, exclusively for NADEC in Saudi Arabia and the GCC and it is expected to enhance operational efficiency and reduce costs by adopting global best practices in supply chain management.

This strategic partnership aligns with NADEC’s commitment to Vision 2030 initiatives and its efforts to strengthen food security in the Kingdom by enhancing local production capacities and delivering high-quality local protein (red meat) products with diverse options for all consumer segments.

It is worth noting that Hilton Foods is one of the world’s leading companies in the protein (red meat) sector, offering high-quality meat, seafood, and vegan and vegetarian food products. The company operates through 24 technologically advanced facilities for food processing, packaging, and logistics services, serving over 19 markets across Europe, Asia, the Pacific, and North America.