Maadaniyah to launch valve plant in early 2022, says CEO

Shaker Otaibi, CEO of Maadaniyah

Shaker Otaibi, Chief Executive Officer (CEO) of National Metal Manufacturing and Casting Co. (Maadaniyah), said work will begin on the high-pressure valve plant, which serves the oil and petrochemical sector, in early 2022.
 

The plant will be built on a land plot allocated for it on King Salman Energy Park (SPARK), Otaibi told CNBC Arabia TV channel.
 

Demand for the plant's products is very high, as Aramco's demand for these products ranges between nearly $2 billion to $3 billion annually, in addition to the increasing demand from the petrochemical and desalination companies as well as the Gulf countries.
 

Further, the CEO said the capital increase proceeds will be used to finance new projects, working capital and repayment of loans.
 

SAR 65 million of the proceeds will be used to finance new projects, and SAR 25 million to pay off long-term loans – the commercial loans only. This will not include the Saudi Industrial Development Fund's (SIDF) loan of SAR 15 million, Otaibi said.
 

He pointed out that an agreement was signed with the strategic marketing partner of the aluminum foundry plant to export 70% of its products to European and American markets, especially the automobile sector.
 

When asked about the date of swinging to profitability or the break-even point and dividend distributions, Otaibi said there will be new projects and strategic plans for compensation in early 2022.
 

He concluded that there is still no plan for dividend distributions.
 

Maadaniyah’s subscription to new shares and rights trading began today, Nov. 29, to increase capital from SAR 234 million to SAR 354 million, Argaam reported.