Singapore-based Rotary Engineering Limited is increasing stake in its joint venture company in Saudi Arabia to 51 per cent.

This follows a move to increase the capitalization of the joint venture company, Petrol Steel Co. Ltd from the present SAR5 million ($1.33m) to SAR20m, the company said in a statement.

The company also revealed that, through Petrol Steel, it has secured a $62 million deal with Saudi Kayan Petrochemical Company to construct 24 tanks for its Saudi Kayan Petrochemical Complex in Al Jubail, Saudi Arabia.

The project involves the engineering, supply, fabrication, construction, testing and pre-commissioning of 24 tanks. Work is due to commence and is expected to be complete by end of the year.

This is Petrol Steel’s first significant win. Last year, it secured an S$11 million Engineering, Procurement & Construction deal from SHARQ Eastern Petrochemical Company. That contract was to provide engineering, procurement and construction support for the ethylene plant that forms part of the SHARQ Third Expansion Project at Jubail Industrial City in Saudi Arabia.

Rotary is a leading provider of engineering, procurement, construction and maintenance services supporting the oil-and-gas and petrochemical industry. The  Saudi Kayan Petrochemical Company, specialises in chemical and petrochemical production and is a partnership between Saudi Basic Industries Corporation (SABIC) and Al Kayan Petrochemical company.

“Our venture into the Middle East has been a gradual but heartening process. We are constantly scaling the learning curve and there is indeed much for us to learn as we enter into a relatively new market,” said Rotary’s chairman and managing director Chia Kim Piow.

“It is indeed gratifying that our joint venture partner recognises our lead role in the execution of projects and is thus prepared for us to take a majority stake in this venture. It speaks volume of their confidence in Rotary and what we are able to commit and deliver in terms of our technical expertise, extensive experience and financial strength,” said Rotary’s chairman and managing director Chia Kim Piow.

“We are confident that this will turn out to be a winning move as it strengthens our
toehold in this market. There are many opportunities in the Middle East and we see
tremendous potential there. The environment is competitive, but it spurs us to work
even harder to secure more deals,” Chia said.

Rotary, which has maintained its presence in the Middle East since 2006, invested S$22 million to set up a fabrication and maintenance facility in Jubail Industrial City last year. - TradeArabia News Service