Zamil Industrial, an international manufacturing and fabrication group, announced the launch of a new 50:50 joint venture with Hudson Products Corporation - through its affiliate Hudson Products Middle East LLC, a world leading manufacturer of Air Cooled Heat Exchangers. The total investment in this venture is SAR 75 million (USD 20 million), and will be financed through a combination of equity funded by the partners and loans compliant with Islamic Sharia. The agreement was completed after finalizing all details on Wednesday, 30 April 2008.
The partnership, which will operate from Dammam, Saudi Arabia, will focus on the manufacture, assembly and maintenance of Air Cooled Heat Exchangers serving utility, petroleum, chemical, oil and gas processing and industrial customers in the Middle East, Africa, and central Asia. The new products will complement Zamil Industrials primary products, such as air conditioning systems and steel structures.
The partnership places both companies in a position to meet growing and changing industrial product needs across the region for today and well into the future. It will also have a positive impact on the companys future revenues.
The joint venture enhances Zamil Industrial's flexibility and strength, empowering the company to continue manufacturing the highest quality cooling systems for industrial applications, said Abdulla Al Zamil, COO at Zamil Industrial.
Air Cooled Heat Exchangers do not require water, which means that plants requiring large cooling capacities need not be located near a supply of cooling water. This is a distinct advantage in our target markets where water supply is scarce. Manufacturing and service operations for the joint venture will be undertaken by Zamil Air Conditioners and Zamil CoolCare," added Abdulla Al Zamil.
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.