National Metal Manufacturing and Casting Co. (Maadaniyah) plans to establish a factory specialized in manufacturing valves used by the oil, gas, and petrochemical industry.
According to a bourse statement, the project is estimated to cost SAR 71M and will be financed from the company’s own capital and through banks, provided it is 100%-owned by Maadaniyah.
The construction is expected to start in Q4 2021 and complete by Q1 2023. The three-month pilot production project is likely to start in Q2 2023, the statement said, adding that commercial production is estimated to start in H2 2023.
Maadaniyah expects a positive financial impact, details of which will be announced in due course. The financial impact is expected to reflect starting H2 2023, it added.
Details of executing party or counter party will be announced later, the statement said, adding that there are no related parties.
Maadaniyah said the project is the same that was announced in the first week of October, regarding cancellation of the memorandum of understanding (MoU) signed with Valco Group.
On May 1, 2016, Maadaniyah signed an MoU with Valco Group to set up a project to manufacture valves specialized in the field of oil, gas, and petrochemicals, Argaam earlier reported.
The company’s board of directors recently approved the cancellation of the MoU, due to the failure to reach an agreement between the two parties.