SGS, TDS Group sign JV for SAR 1 mln ground equipment maintenance services firm

Saudi Ground Services Company (SGS) signed a joint venture (JV) agreement with France’s TLD Group to establish TLD Arabia for Equipment Services, a limited liability company, to provide ground handling equipment maintenance services across all airports in Saudi Arabia.

The equally-owned JV will have a share capital of SAR 1 million, divided into 1,000 shares of SAR 1,000 each. The new venture will be funded in equal proportions through internal resources by both the partners, SGS said in a bourse filing.

The registration process is expected to be completed in Q3 2020, with operations likely to start in Q4 2020.

A positive financial impact of the partnership is likely to be reflected in Q2 2021, the statement added.

The partnership is one of the strategic initiatives undertaken by SGS to contribute towards achieving a balanced growth of the air transportation ecosystem in line with Vision 2030 that aims to transform the Kingdom into a leading industrial power and international logistics platform.

It further aims to provide competitive services in all airports in the field of digitalization and maintenance of equipment, as well as technologies specialized in the sector by transferring and localizing TLD Group’s technologies. This will have a positive impact in reducing operating costs, while elevating the level and standards of service.

Any material development related to this partnership will be disclosed in due course, the statement noted.