Logo of Alwasail Industrial Co.
Alwasail Industrial Co. announced the sale of its full stake in Shawcor Composite Pipe Systems Middle East Ltd.’s (Shawcor CPS) factory in Al Khobar to Marjan Factory Co. in Dammam Second Industrial City for a total value of SAR 12 million.
Shawcor CPS has a license for its factory in Dammam's second industrial zone, covering 50,000 square meters. It is a 100% owned subsidiary of Alwasail with a license to manufacture nonmetallic composite pipe products, Alwasail said in a statement to Tadawul.
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The sale occurred as the company shifted its focus from investing in composite pipes to developing and expanding polyethylene pipe production and increasing its market share following the installation of its UAE factory and new factories in Qassim’s first industrial zone, Buraydah, the company's headquarters.
The transaction will result in a capital gain of more than SAR 9 million, which will be reflected in the financial results for H1 2024, as the asset has a book value of SAR 2.3 million.
The proceeds will be used for general corporate purposes, Alwasail said, indicating that no related parties are included in the deal.
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