Zamil Industrial, the leading Middle East and international manufacturer of building materials, has announced a new Joint Venture with Armacell International Holding GmbH of Germany to jointly produce rubber insulation products in the Middle East region.
This joint venture marks a major investment and commitment by the two partners to serve the growing building and construction industry in the GCC and Middle Eastern markets.
The manufacturing facility for the new JV will be located in Dammam, Saudi Arabia, and will produce engineered plastic foams and related accessories & sundries. The total investment value for this new JV will amount to approximately SAR 100 million (USD 26.6 million). Zamil Industrial will own 49 percent share in this new company.
“This Joint Venture with Armacell demonstrates our commitment to serving our home market with technologically advanced insulation products that are globally acclaimed for high quality and high performance,” said Abdulla Al Zamil, Chief Operating Officer, Zamil Industrial, upon signing the agreement that was held on Monday, 7 April 2008 in Dammam, Saudi Arabia.
Mr. Ulrich Weimer, President and CEO of Armacell, stated: “We are very happy to join forces with Zamil Industrial. Speed to market, conducting business at high ethical levels and creating value for customers, these principles are shared by both companies and will guarantee growth and success for the new joint venture in the future”.
About Armacell
Armacell, headquartered in Muenster, Germany, is a globally renowned manufacturer of engineered foams and world leader for flexible technical insulation materials. In 2007 gross turnover was around EURO 400 million. The group has approximately 2,500 employees and operates 20 manufacturing facilities in 13 countries, including China, Australia, North and South America as well as Europe. In addition to elastomeric products marketed under the leading brand ARMAFLEX, Armacell also manufactures and distributes other thermoplastic products and technical foams for a multitude of industrial as well as sports and leisure applications. More information can be found at www.armacell.com.
About Zamil Industrial
Zamil Industrial was founded in 1998. It is headquartered in Dammam, Kingdom of Saudi Arabia, and employs more than 8,200 people in 55 countries. As an international manufacturing and fabrication group, it provides leading air conditioning, pre-engineered steel buildings, structural steel products, process equipment, transmission and telecommunications towers, open web joists and decks, architectural glass processing, aerated concrete products and fiberglass insulation solutions to meet the requirements of the global construction industry through its four sector businesses: Zamil Air Conditioners (www.zamilac.com), Zamil Steel Industries (www.zamilsteel.com), Zamil Glass Industries (www.zamilglass.com) and Arabian Fiberglass Insulation Co. Ltd. (www.afico.com.sa).
For the year ended 31 December 2007, Zamil Industrial posted turnover of SAR 3.68 billion/USD 982 million, a growth of 28.4% over 2006, with net profit, after Zakat contribution, of SAR 206.5 million/USD 55.1 million. Post Zakat Earnings Per Share during 2007 grew to SAR 4.59/USD 1.22 from SAR 4.26/USD 1.14 representing 7.8 percent growth. Shareholders’ equity grew by 20.6% to SAR 894.3 million/USD 238.5 million. Export sales accounted for SAR 1331.7 million/USD 355.2 million representing 36% of total revenue and 20.4% growth over 2006. Zamil Industrial exports to more than 80 international markets.
Zamil Industrial shares are actively traded on the Saudi Stock Market. More information can be found at www.zamilindustrial.com.
