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Zamil Industrial Investment Co.’s subsidiary, Zamil Air Conditioners Co., signed a cooperation agreement with Local Content & Government Procurement Authority (LCGPA) to develop and increase local content in manufacturing sector within the Kingdom.
The agreement is aimed to reach the highest potential and enhance domestic spending in line with the strategic goals of the two parties, the Saudi-listed firm said in a bourse statement.
The agreement was signed between the CEO of LCGPA, Abdulrahman bin Abdullah Al-Samari, and the CEO of Zamil Industrial, Abdulla Mohammed Al Zamil.
According to the agreement, the authority will work on developing a comprehensive strategy and program for enhancing local content that includes proposed amendments to Zamil Air Conditioners’ procurement regulations and systems.
The authority will also prepare a framework for improving manufacturers and suppliers that deal with the company, standardizing the methodologies and measuring mechanisms of local content, and defining the baseline of local content and its future objectives in the company.
In addition, Zamil Air Conditioners will define and identify investment opportunities to develop local content in the materials and goods produced by the company, as well as its services, which the authority can take advantage of to increase the percentage of local content in each of them.
Additionally, the company will not only share previous procurement data and expected future needs for related materials and services with the authority, but also the best practices and experiences of the two parties. These steps will enhance the local content, in addition to the studies related to raising its percentage, including the experiences that support localization opportunities and the transfer of technologies and skills.
The statement also added that this agreement is part of a series of cooperation agreements in various sectors, signed by the authority with several organizations from the public and private sectors in order to develop local content and increase its share in the contracts and purchases of government sectors.
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