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Logo of Saudi Arabian Amiantit
Saudi Arabian Amiantit Co. signed on March 17, 2021, a memorandum of understanding (MoU) with National Water Co. under the supervision of Minister of Environment, Water & Agriculture Abdulrahman Abdulmohsen AlFadley, the firm said in a bourse filing.
The MoU term is one year from date of signing, and will be automatically renewed for a similar period or periods.
The MoU aims to enhance local content in the water segment through joint co-operation and exchange of information and expertise, which will allow the firm to develop products and monitor their quality.
The firm expects this will lead to Amiantit products, including ductile iron pipes, being added to the mandatory list to support infrastructure, maintenance and operation projects, in accordance with the local content preference manual and manufacturers’ qualifying process.
Saudi Arabian Ductile Iron Pipes (SADIP), an Amiantit subsidiary that produces ductile iron pipes, is a pioneer in the industry with more than 30 years’ experience. Its products are important for infrastructure projects and are in line with National Water Co's. trends and future projects, the statement said.
The MoU is expected to enhance the competitive capacity of the company, giving it the edge to compete with global companies on the local level, which will reflect positively on the volume of sales with reasonable prices.
In November 2020, Amiantit announced that after reviewing the company's local content audit report for 2019, the percentage of local content reached 48.10% and the percentage of local content and revenue from exports was 58.10%, according to data available with Argaam.
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