Trade Arabia reports a company statement that says the equipment and machinery contracts have been finalised and excavation is underway.

Emirates Building Systems and Teejan have been awarded the contracts for steel and civil works of the expansion project, the statement continued.

Announced earlier this year, the expansion strategy will help upgrade, expand and boost production capacity to 50 per cent, doubling the hatching egg production from the current 10 million eggs a year to 20 million.

The farm currently processes 34,000 birds per day, which will increase to 51,000 birds after the expansion is completed.

The project, which would come up in Thumrait, in the southern Dhofar Region, is part of A’Saffa’s target of increasing the sultanate’s food security and self-sufficiency.

About 70 percent of its produce are consumed in Oman and the rest is exported to other Gulf States and third countries.

"At the moment, we cater for just 16 per cent of the market and that exists in Oman, despite producing 11,000 tonnes of chickens ever year. After expansion, this will go up to 16,000 tonnes and we should be able to increase our market share to 24 per cent," explained Dr Nasser Al Mauly, CEO of A’Saffa Poultry Farms.

Staneley Victor, head of marketing & sales for A’Saffa Poultry Farms, pointed out that when the company started commercial production in 2004, its output was 50 per cent of total production capacity.

"Today, though we have reached 100 per cent of our production capacity, we are still unable to meet the market requirements, so this expansion will definitely help us to cater to the increased demand," he added.

The company’s net worth is expected to rise to RO20 million ($51.9 million) in 2009 once the expansion is complete, with commercial production scheduled to start at expanded capacity in the first quarter.

The plant processes 11 million chickens in a year, and has five million chickens available at any given time.

The A’Saffa range includes fresh and frozen chicken along with chicken appetizers like nuggets, burgers, fillets, fingers, samosas and spring rolls.