Saudi Investment Recycling Company (SIRC), a wholly-owned unit of the kingdom's public investment fund, said it has reached an agreement with Jadwa Waste Management Opportunities Fund to acquire the entire stake in Global Environmental Management Services (GEMS).

GEMS is a leading industrial waste management company in Saudi Arabia, providing hazardous waste management, industrial and engineering services to oil, petrochemical and industrial corporations.

It also has a strong and experienced management team, complemented by access to in-house science and engineering centers in the UAE and India.

The completion of the acquisition marks the latest milestone in SIRC's mission to pioneer solutions that support the recovery of resources through recycling and reduce diversion of waste to landfills, in line with the objectives of Vision 2030 program.

Following its acquisition of GEMS, SIRC aims to meet the national recycling target of 85 per cent for the industrial and hazardous waste in Saudi Arabia and landfilling the remaining 15 per cent by 2035, said senior officials while speaking at the ceremony held to mark the successful takeover.

Currently, Saudi Arabia recycles around 10 per cent of the 50 million tons of total recyclable waste it produces, with 90 per cent diverted to landfills, according to preliminary studies by the PIF, they stated.

The event was attended by Engineer Abdulrahman bin Abdulmohsen Al Fadley, the Minister of Environment, Water and Agriculture, and Chairman of the board of directors of SIRC; and Adib Alzamil, the Chairman of the Board of Directors of Jadwa Investment Company, Tariq Al Sudairy, Managing Director and CEO of Jadwa Investment and Engineer Jeroen Vincent, CEO of SIRC.
 
Vincent said the deal will allow SIRC to become the biggest player in the Gulf region's industrial and hazardous waste management sector as well as provide a platform to further develop capacity and state-of-the-art technologies to treat hazardous waste in an environmentally-friendly way.

"The acquisition represents a major development for SIRC and will establish our strong presence in the industrial waste sector while maintaining and expanding GEMS operations," stated the top official.

"SIRC intends to fully integrate industrial and medical waste treatment into its value chain operations, particularly in the mining, minerals, manufacturing and industrial segment, in order to reuse and recover resources," he added.

Vincent said SIRC plans to expand its current capacity to cater for 88% recycling and operations of GEMS facilities and unlock the potential for a new market for raw materials recycled from mining and medical waste.
 
Al Sudairy said: "We are pleased with the successful completion of this landmark transaction."

"We are proud to have played a role in the development and growth of GEMS’ business scope and geographic reach over the last five years, and wish the company continued success under the leadership of SIRC," he stated.

At present, GEMS operates four facilities in Yanbu, Rabigh, Johfa and Dammam. The fifth plant, under construction in Jubail, is expected to begin operations this year, said the top official. Preparations for the sixth facility in Jizan have started, he added.

Established by the Public Investment Fund in 2017, SIRC plans to develop, own, operate and invest in various activities across all waste types in the kingdom.

Furthermore, SIRC activities will contribute an estimated SR37 billion ($10 billion) to the GDP, attracting up to SR6 billion ($1.6 billion) in inward investment and creating around 23,000 new jobs by 2030.-TradeArabia News Service