The local Agthia Group has broken ground on its new production and distribution complex at Al-Wathba North in Abu Dhabi.

The first phase of the new facility will see the site house Agthia subsidiary Grand Mills for Flour and Feed’s new 400 tonne-a-day mill as well as a 50,000 tonne grain silo. Work will be completed in the first quarter of 2012.

 The silo will be operated by Agthia but owned by the Abu Dhabi Food Control Authority (ADFC) and built by the UAE’s Abu Dhabi General Services (Musanada).

“Wheat will be stored at the facility will be used to produce flour from the mill as well as being used to produce animal feed,” says Ilias Assimakopoulos, chief executive officer of Agthia Group.

The wheat stored at the complex will be bought on the global spot market and the flour produced at the mill will be sold across the UAE. The total area of the site is 123,000 square metres.

“The land we have here will allow us to expand and as well as the flour mill and the grain silo we also have plans to build a frozen baked products factory at the site,” says Assimakopoulos. “Then we will maybe look at a distribution centre and animal feed facility.”

The UAE government subsidises grain as well as animal feed to protect consumers from volatile prices.