Inline with the National Industrial Development Program’s goals and the Saudi Arabia Vision 2030, Saudi-based Gas Arabian Services Company (GAS) has signed an agreement with Tubefit Engineers, a leading Indian group specialising in design engineering and manufacturing of industrial valves, to set up a new venture for manufacturing a wide range of instrumentation fittings and valves.
The new company, Tubefit Arabia Factory, will be set up at an investment of $1.33 million in Saudi Arabia, said GAS in its filing to Saudi bourse Tadawul.
The lion’s share of 53% in the company will be held by Tubefit Engineers, while the rest 47% ownership will remain with GAS.
GAS will finance its share of this investment, totaling SR2.35 million, from its own resources, it stated in the filing.
Tubefit Arabia Factory is expected to have a positive overall financial impact on GAS in the long term, the company said in its filing to Saudi bourse.
However, the Saudi company said the establishment of the new company is dependent on obtaining customary regulatory approvals, and satisfactory completion of the JV conditions.
Headquartered in India, Tubefit Engineers is a major industrial group involved in the business of design engineering, manufacturing of tube fittings, industrial and instrumentation vavles, air headers and condensate pots as well as manifolds, and chemical injection quills.