Managing Director of State Trading Organization (STO) Shimad Ibrahim has declared that the company's board has agreed to discontinue the work begun to establish a flour factory in Maldives due to feasibility concerns.
Managing Director of State Trading Organization (STO) Shimad Ibrahim has declared that the company's board has agreed to discontinue the work begun to establish a flour factory in Maldives.
In response to a question posed by a shareholder at last night's STO Annual General Meeting, Shimad said that the board had decided to scrap the project after reviewing old and new feasibility reports which found the venture to be relatively costly and non-profitable.
STO had commenced efforts to establish a flour factory in Maldives during 2021. The company said at the time that the purpose of the project is to ensure food security within the country.
Responding to another question posed by a shareholder at the Annual General Meeting last night, Shimad said that they had obtained a large land plot from the Maldivian Capital, Male' City instead of the uninhabited island of Noonu atoll Ekulhivari, located in the northern province, 200 kilometers away from Velana International Airport. Shimad had further highlighted that the worth of the land stands too high to sell it off at the market.
The government decided to lease the island of Ekulhivari to STO for the purpose of developing the land in May 2016. However, the company had failed to commence work to develop the island and also remained unsuccessful in its attempts to sell the island afterwards, with the latest announcement seeking buyers published in January 2023.
During the Annual General Meeting last night, Shimad had also added that STO is striving to facilitate the best business prospects for both the company and the public, with the company gearing up to begin work on a bunkering facility by next month.
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