Gulf Elevators & Escalators to set up new Saudi production unit
RIYADH, November 7, 2024
Saudi-based Mayar Holding Company has announced that one of its key subsidiaries, Gulf Elevators & Escalators Company, has signed a partnership agreement with Chinese industrial major Shenyang Yuanda Intellectual Industry Group to set up a new factory for production of elevator and escalator products in the kingdom.
One of the largest Chinese companies in the sector, Shenyang Yuanda has been engaged in the manufacturing, engineering and development of elevators and escalators since 2001.
Under this deal, Shenyang Yuanda will help Gulf Elevators & Escalators upgrade and develop its current production lines as well as in transfer of technology, intellectual knowledge and engineering expertise, said Mayar Holding in its filing to Saudi bourse Tadawul.
In return, Shenyang Yuanda will be getting a 10.5% stake in Gulf Elevators & Escalators Company, it stated.
The agreement covers the geographical area of the Middle East, Africa and Europe, excluding the Russian Federation.
The deal will see the Chinese group get involved in the manufacture of BLT products of elevators and escalators with unique capabilities in terms of speed, capacity, and diversity at the company's factory in Saudi Arabia as well as boost automation of the production lines to achieve a savings of 30% of the total production cost, said the company in its filing.
It will also pave way for training to local youth and upgradation of their production skills in the factory.
This partnership is expected to have a positive financial impact on the financial statements starting from the first quarter of 2025, it added.-TradeArabia News Service
