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New Wheat Flour Mill in Sri Lanka to End Prima Monopoly And Boost Supplies

May 27, 2008

Dubai’s Al Ghurair Group commissioned a 56 million dollar flour mill in Colombo port yesterday (26) in a move that will end the flour manufacturing monopoly currently enjoyed by Prima. Backed by the leading flour millers in the Middle East, Al-Ghurair Group, the Switzerland made plant ‘Buhler’ was custom-built targeting 33 per cent of Sri Lanka’s wheat flour demand.

According to Chief Executive Officer Sathak Abdul Kadar wheat flour from the mill, ‘Serendib Flour Mill’ (SFM) will be on the market on June 2 with prices similar to Prima but fortified with folic acid and iron.

This state-of-the-art mill which has a 1,000 ton per day single-line capacity is also upgradeable to meet the increasing demands of wheat flour in Sri Lanka to 2,000 metric tons within the next 2 years, sources said.

The commercial quantities of SFM which is high in quality is scheduled to reach the market by June 2, 2008 under the brand name “Seven Stars”.
The company said its mill gives consumers a choice of flour in the market, as Singapore’s Prima which is based in Trincomalee harbor in the country’s east had been the sole local producer till now.

Essa Al Ghurair, chairman of the parent firm, Al Ghurair Foods, Dubai, said there would be no shortages despite high prices and supply restrictions in today’s market.

“We’re here for the long term,” he said adding that the group was considering another big investment that would be revealed later.

The company was also familiar with the Sri Lankan market having shipped flour to the island previously and would supply different types of flour to suit the Sri Lankan palette, he said.

Source: Government of Sri Lanka

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