Forafric Global PLC (Nasdaq: AFRI, or “Forafric”), a vertically integrated agribusiness serving Africa, today announced that its fully-owned subsidiary, Forafric Maroc, has entered into an agreement with Alapala Foreign Trade LLC (“ALAPALA”) to expand existing mills and construct new mills to significantly increase its wheat and durum processing capacity.

Under the terms of the agreement, ALAPALA will extend three of Forafric Maroc’s existing mills and construct three new mills. This expansion is expected to increase wheat and durum processing capacity by 2.370 metric tons per 24 hours over the next 30 months. Forafric Maroc’s present crushing capacity represents 2.420 metric tons per day. The global cost of this expansion, including all components, buildings, equipment and working capital is approximately one billion Moroccan Dirhams (~US$101 million).

Mustapha Jamal Eddine, Forafric Maroc CEO, commented, “We have improved our processes, lowered our cost basis and increased market penetration over the last four years. Teaming with ALAPALA will enable us to significantly increase output and take our business to the next level. Leveraging synergies will help us to further lower our cost basis and provides an entry into the dynamic Moroccan market.”

Gorkem Alapala, Vice Chairman of the Board of ALAPALA Holdings, commented, “We are pleased to have the opportunity to work with Forafric Maroc on its program to enter a new market and significantly increase its production output. Together we will deploy our innovative technology to further develop the milling industry in Morocco.”

About Alapala Foreign Trade LLC

Founded in 2003, Alapala Foreign Trade exports machinery for Alapala, MS Italia and Henry Simon as well as silo and handling equipment. Alapala Foreign Trade also exports flour and pasta to mainly the Africa continent.

ALAPALA is a leader in the global milling industry with an impressive history of successfully completing more than 700 mills across the globe.

About Forafric

Forafric is a leading agribusiness player in Africa with activities in Morocco and Sub-Saharan Africa. It is the milling industry leader with a complete range of flour and semolina, and secondary processing products such as pasta and couscous. The Group operates 12 industrial units, and 2 logistics platforms. Forafric exports its products to more than 45 countries around the world. Forafric intends to continue expanding both in Morocco and in Africa and contributing to growing Africa food security.

Forward-Looking Statements

This press release includes forward-looking statements that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based, except as required by law.

Hayden IR Brett Maas (646) 536-7331 brett@haydenir.com

Forafric Global (NASDAQ:AFRI)
Historical Stock Chart
From Oct 2024 to Nov 2024 Click Here for more Forafric Global Charts.
Forafric Global (NASDAQ:AFRI)
Historical Stock Chart
From Nov 2023 to Nov 2024 Click Here for more Forafric Global Charts.