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EYAP cites diminished visibility, construction industry slowdown in European and Turkish markets.
Türkiye’s Eczacibasi Yapi Gereçleri A.S (EYAP), a subsidiary of the country’s Eczacibasi Holding, has pulled out of a planned joint venture with the Saudi Ceramics Company to manufacture sanitary ware and complementary parts in the kingdom.
In a filing to the Saudi bourse Tadawul on Sunday, Saudi Ceramic disclosed that it received a letter on 11 October from EYAP, stating its desire to not complete the process of a study to incorporate a joint venture company based in Saudi Arabia.
The joint company was to be equally owned by both parties, specialising in the manufacture and sale of sanitary ware and its complementary parts. According to Saudi Ceramic, EYAP has cited diminished visibility in the region and the ongoing construction industry slowdown in the European and Turkish market as the reason for not pursuing the venture.
“However, the two parties will continue studying future common cooperation opportunities in all aspects related to joint commercial activities between the two companies in sanitary ware production,” Saudi Ceramic assured in its statement.
In April 2023, Saudi Ceramic and EYAP signed a non-binding letter of intent — as well as a a preliminary non-binding agreement in October 2023 — to carry out a study to form the joint venture.
The companies agreed to extend the preliminary non-binding agreement signed in October 2023 until the end of the current year, 31 December, 2024.
Saudi Ceramic’s capital amounts to $213 million (SAR800 million). Eczacibasi holds the production and sales rights for a number of major tile and sanitary ware brands including VitrA, Artema, Burgbad and Villeroy & Boch. |
