Almarai Company, the Gulf's largest diary company by market value, has decided to start production on a SR650 million (Dh636m) infant formula plant as well as a baked goods factory before the end of next year.

The sources said that the baked goods facility is slated to cost SR200m.

The sources further added that the formula factory, which is expected to produce revenues of between $50m (Dh183.6m) and $70m, will start production toward the end of the last quarter of 2010.

Almarai, which has been diversifying its revenue through acquisitions, intends to spend SR 6 billion on expansion in the five years to 2013.