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Saudi Arabia’s Gulf Elevators and Escalators Company Limited has signed a contract with China’s Shenyang Yuanda Intellectual Industry Group Company to manufacture elevators and escalators locally, as well as update and develop existing production lines.
In a filing to the Saudi bourse Tadawul on Thursday, Mayar Holding said its subsidiary Gulf Elevators and Escalators has signed an agreement to manufacture BLT products of elevators and escalators with unique capabilities in terms of speed, capacity, and diversity at the company’s factory in the Kingdom.
Existing productions lines at the Gulf Elevators and Escalators will be updated, with increased production capacity and automation to save 30% on total cost of production.
Transferring knowledge, intellectual property and engineering to develop elevator and escalator products are also covered in the agreement, as well as training and developing skills of factory staff.
The agreement covers the geographical area of the Middle East, Africa and Europe, excluding the Russian Federation.
In return, a 10.5% stake in Gulf Elevators & Escalators will be transferred to Shenyang Yuanda Intellectual Industry Co.
Shenyang Yuanda Intellectual Industry Co. is a Chinese public joint-stock company that has been engaged in the manufacturing, engineering and development of elevators and escalators since 2001 and has contributed to projects around the world.
Mayar Holding said the financial impact as a result of the agreement will be reflected from Q1 2025 onwards. |
