Red Sea International finalizes business plan until 2025, proposes restructuring

Red Sea International Co. finalized its business plan for the period 2021-2025, with the aim to return to profitability and offset the negative impact of coronavirus on its operations, which led to rescheduling or shelving of major projects over the last financial period, the firm said in a bourse statement.

The business plan includes restructuring of the company and its affiliated entities, with the aim to bolster their performance. The restructuring process will entail shutting down low-performing branches and subsidiaries or reducing the company's stake in them.

The plan also targets boosting the company's capabilities in the Saudi market in order to maintain its position in manufacturing and procurement of pre-fabricated units and buildings, along with providing facility management and maintenance services for labor and residential complexes, the company added.

The proposal also includes relocating joint services from Dubai, as well as from branches and subsidiaries, and pooling them in the company's main office in Saudi Arabia.

The plan also aims for the company to effectively participate in projects and initiatives launched under the Saudi Vision 2030, capitalizing on its outcomes in the housing sector and providing real estate and asset management services.