Zamil Industrial has signed a joint venture agreement with Rabiah and Nassar Group under which Zamil will acquire a 50 per cent stake in Rabiah and Nassar Precast Concrete factory (Ranco Precast), based in Riyadh.

The total investment value in this factory is SR117 million ($31.2 million), said a statement.

The facility designs, manufactures and erects precast concrete buildings used for various applications including residential, schools, shopping malls, plants, wall panels, and fabricates a variety of other concrete-based products.

Precast concrete structures are known for their attractive designs, rapid assembly and low maintenance.

The company is also planning to construct two new factories to produce Hollocore and concrete panel systems, and to expand its operations in new locations to become one of the biggest precast concrete factories in the region, it said.

“Zamil Industrial Board of Directors’ decision to become a partner in this factory is part of the company’s strategy to expand its operations and deliver new products and solutions, in addition to its current offerings of innovative, high quality air conditioning systems, steel products, architectural glass products and fiberglass insulation products, as well as to invest in the building and construction sector,” said Dr Abdulrahman Al Zamil, chairman of the board, Zamil Industrial.

He was speaking after signing the agreement with Rabiah and Nassar Group.

Zamil Industrial is very glad to establish a long-term strategic partnership with Rabiah and Nassar Group, especially considering its long and substantial experience in the field of precast concrete structures, which has advanced its status to that of one of the leading companies in Saudi Arabia.

“A primary objective of forming new partnerships is to expand our operations within and outside Saudi Arabia, as well as to establish new industries in the building materials arena that meet the increasing demand for these products in Saudi Arabia and the region,” said Engineer Abdulwahab S Al-Nassar, board director at Rabiah and Nassar Group.

“We have chosen Zamil Industrial as a new strategic partner because of its well-known local and international reputation and its marketing, managerial and technical capabilities, which we believe that it will add a significant value to RANCO Precast on the long run”.

Amwal Financial Consultants was the financial advisor for the deal. – TradeArabia News Service