Tuna can manufacturing plant
Support canned tuna companies to localize production in Saudi Arabia (processing and packaging of the second order) to replace imports of finished goods. The project creates 220-250 direct jobs and 480-500 indirect jobs.
Study content
Rationale for choosing the project
Packaged fish is experiencing rapid growth in the market, increasing demand for prepared food products and seafood such as tuna.
The increasing number of women as workers is driving demand for prepared food and seafood products, including canned tuna.
Improved packaging, labeling and distribution processes are needed to boost exports and increase the international reach of the products.
The project creates between 220 to 250 direct jobs and 480 to 500 indirect jobs, contributing to improving the level of employment in the region.
The project contributes to enhancing food security in Saudi Arabia by increasing local production and providing healthy and accessible food products.
The project supports the use of sustainable production techniques, which contributes to environmental protection and enhances the sustainability of the food sector.
The project meets the growing market need for canned tuna, making it an essential component of food supply chains.
Demand analysis
Fresh fish is the largest category and packaged fish is the fastest growing market.
More women workers are driving demand for ready-to-eat food and convenience seafood products including tuna.
There is a need to improve packaging, labeling and distribution to help boost exports.
Consumer trend toward healthier foods: With growing health consciousness, consumers are looking for protein-rich food options such as tuna, boosting demand for canned tuna products.
Increased consumption of prepared foods: Many consumers prefer canned foods as a quick and easy option, increasing the chances of success for the project.
Reduce reliance on imports: The project aims to reduce dependence on importing cans of tuna, which enhances food security and contributes to achieving sustainability in local production.
Supporting local industry: The project contributes to the development of the local industry and promotes the growth of local companies in the food sector.
Opening new markets: With quality local production, regional and international markets can be targeted, enhancing export opportunities and increasing project revenues.
Financial indicators
Capital: SAR 20 million
Internal Rate of Return (IRR): 20%
Expected annual return: With a 20% rate of return, annualized profits are expected to reflect the high returns on investment.
Capital payback period: With the high return, the capital is expected to be recovered in 4 to 5 years.
Cash flow: The project’s cash flow will increase as production increases and sales expand both in the local market and for export.
Profitability: With an investment of SAR 20 million and a 20% rate of return, a good profit margin can be achieved as production begins to stabilize in the market.
Investment advantages
Stable returns: With the increasing demand for tuna cans in local and international markets, the project guarantees stable returns in the long term.
Low cost vs. profitability: The cost of production is reasonable compared to the potential profits, resulting in high economic viability.
Market expansion: The production line can be expanded to include other types of fish and marine products, enhancing the factory’s ability to diversify and grow.
Partnership opportunities: Collaborate with local and international wholesalers and distributors to increase market share.
Sustained demand: Growing health awareness among consumers makes tuna a preferred choice in healthy diets, ensuring sustainable demand for the product.
Features of the project
High demand for the product: The food market is witnessing a significant increase in the demand for tuna cans due to the health benefits and the fact that it is a fast food product.
Sustainability of raw materials: The availability of raw materials for tuna production, such as fish, ensures the sustainability of production.
Government support: The Saudi government supports industrial projects and factories by providing financial and tax facilities, which contributes to reducing operating costs.
Possibility of export: The product can be exported to regional and global markets, providing opportunities for expansion and growth.
Advanced manufacturing technology: The use of modern manufacturing techniques, which reduces operational costs and improves efficiency and quality of the final product.
Compatibility with modern dietary patterns: Consumers’ growing preference for quick and ready-to-eat products such as tuna opens up a wide scope for growth in this sector.
