GAS signs JV deal to set up valve producer in Saudi Arabia

Logo of Gas Arabian Services Co. (GAS) 

Gas Arabian Services Co. (GAS) signed on Aug. 22 a joint venture (JV) agreement with India-based Tubefit Engineers to establish a limited liability company for the manufacturing of various instrumentation fittings and valves, according to a Tadawul statement.

The new company, named “Tubefit Arabia Factory LLC”, will be headquartered in Saudi Arabia. Its capital will amount to SAR 5 million upon establishment. Tubefit will hold a 53% stake, while GAS will own the remaining 47%.

GAS will finance its share of this investment, totaling SAR 2.35 million, from its own resources.

The new entity is expected to have a positive overall financial impact on GAS in the long term. However, the establishment is pending regulatory approvals and satisfactory completion of the agreement conditions.