Managing Director of the State Trading Organisation (STO) Shimad Ibrahim has said the Board of Directors decided to halt the development of the flour factory project, due to profitability concerns.
The decision was disclosed during the company's Annual General Meeting (AGM) in response to a shareholder's inquiry about the company's expansion into new businesses and the status of the flour factory construction. In response, Shimad said that a recent feasibility study indicated the project would not be profitable. He also said that the updated analysis showed that the costs had increased since the initial feasibility study, making the project less viable.
Additionally, Shimad said that STO is preparing to launch a bunkering service in August as part of its efforts to diversify. He noted that the term sheet signed in March projected the service to start within six months, by September, but they are aiming for a launch in August.
The government has planned to build a commercial harbour in Gaadhoo, Laamu Atoll. The project will include bunkering services, a commercial port, and logistics. The government has already signed an agreement with a Chinese company to develop the Integrated Maritime Hub.