Saudia Dairy and Foodstuff Company, known as SADAFCO, a manufacturer, seller, and distributor in the Saudi food sector, has signed a long-term lease contract with the Saudi Authority for Industrial Cities and Technology Zones, or MODON, in the city of Jazan for establishing a warehouse over an area of more than 15,000 square meters.

The announcement was made during the Saudi Food Show held recently in Riyadh. The agreement was signed by Talal Alnounou, director of public relations and government relations at SADAFCO, and Majed Rafed Al-Argoubi, CEO of MODON. SADAFCO will expand the company’s facilities by establishing a new warehouse in Jazan to meet the increasing demand from its corporate and consumer clients, reduce costs, and raise the efficiency of its supply chains.

Alnounou said: “This initiative aligns with SADAFCO’s strategy to expand within the Kingdom and operate in additional locations. The company operates world-class manufacturing facilities in the Kingdom and has a wide sales and distribution network extending throughout the region.”

He added: “We are focusing our current efforts on meeting the needs of our customers and expanding our product range in the future with a focus on sustainability, in line with the Kingdom’s Vision 2030 and the National Industrial Development and Logistics Services Program.”

Al-Argoubi, meanwhile, said that the agreement signed between MODON and SADAFCO aligns with plans to attract additional investments in the food industry, in line with the goals of the National Strategy for Industry to achieve food security and enhance exports. He added: “MODON has witnessed significant growth in the number of factories operating in the food industry, reaching 1,300 factories by the end of the first quarter of 2024, representing more than 20 percent of the total number of factories, which exceeds 6,500.”

This announcement coincides with several notable milestones achieved by SADAFCO recently. The company announced a significant enhancement of shareholder returns by doubling the proposed profits for the nine months ending on Dec. 31, 2023. This step confirms SADAFCO’s strong financial performance despite the shortened financial year due to a change in the calendar, demonstrating the strength of its brand. Additionally, the company recently opened a new depot in Makkah, spread over an area of 8,000 square meters.

China Petroleum and Chemical Corporation, or Sinopec, launched reports that shed light on the future of China’s petrochemical sector, along with the decarbonization efforts of Chinese companies as they continue to push for a green, low-carbon transition, at a press conference in Riyadh, on May 29. The conference boasted a turnout of over 70 people, featuring a speech by Xie Qinsheng, minister counsellor for economic and commercial affairs, Embassy of China in Saudi Arabia. Participants included representatives from the Saudi Ministry of Energy, Saudi Aramco, the King Abdullah Petroleum Studies and Research Center, King Fahd University of Petroleum and Minerals, and various local news agencies. 

Three key reports, namely “China Energy Outlook 2060 (2024 Edition),” “China Hydrogen Energy Industry Outlook,” and “2024 China Energy and Chemical Industry Development Report,” were presented at the press conference, with the theme Green Transition, High-profile Development, Innovative Future. This was followed by the keynote reports delivered by experts from Saudi Arabia’s Center for Research and Intercommunication Knowledge and Wood Mackenzie Ltd., to introduce the development prospects of Saudi Arabia’s energy and chemical industries and highlight the research results of the global energy transition.

China Energy Outlook 2060 (2024 Edition) shows a downward trend in energy consumption and carbon emissions in China, fueled by the country’s green and low-carbon initiatives, with breakdown forecasts below:

• The outlook forecasts that China’s coal consumption, which anchors the country’s energy security, will stop growing around 2025.
• Oil demand will peak before 2027.
• Natural gas usage is rising and is projected to peak by 2040.
• Non-fossil energy is projected to dominate China’s total energy supply by approximately 2045.

The China Hydrogen Energy Industry Outlook report predicts that by 2060, China’s hydrogen energy consumption will be nearing 86 million tons, creating an industry worth 4.6 trillion Renminbi ($647 billion). Non-fossil fuel as an energy source used for making hydrogen will jump to 93 percent by then, with solar and wind energy contributing to two-thirds of the production.

The 2024 China Energy and Chemical Industry Development report stresses the need to prioritize the conservation, intensification, and high-efficiency recycling of resources in 2024 of the petrochemical industry, while steadily moving toward achieving carbon peak and carbon neutrality, speeding up energy efficiency improvements, and increasing the use of renewable energy sources. International oil prices will sustain a medium-to-high level, but the possibility of major global events may flatten the market.