Zamil Industrial Investment Co. Awarded SAR 118.8 Million Contract

12/07/2015 11:02 AST

Zamil Structural Steel Company Ltd. (ZSSC), a wholly owned subsidiary of Zamil Industrial Investment Co. (Zamil Industrial), has been awarded a contract valued at SAR 118.8 million (USD 31.7 million) by Saudi Electricity Company (SEC) to supply various structural steel products for the Riyadh Power Plant 14 (PP 14) project in the central region of Saudi Arabia.

The agreement was signed on Thursday, 9 July 2015, in Riyadh, Saudi Arabia. The contract is expected to have a positive impact on the company's consolidated financials at the end of each stage of the project during 2015 and 2016. The duration of the contract is twelve months, with the company set to begin supplying the structural steel products in the fourth quarter of 2015. It is anticipated that all project works will be completed by the end of the second quarter of 2016.

According to the contract, ZSSC will fabricate and supply a large tonnage of various custom-made structural steel products for use in the power generation building as well as supply main and auxiliary utility racks for the PP 14 Combined Cycle Power Plant project owned by SEC and located near Riyadh.

PP 13 and PP 14 power plants are considered one of the largest power projects in the Kingdom, with each of the facilities having a capacity of between 1,600 and 1,950 megawatts.

''This project is the result of ongoing collaboration between Zamil Steel and Saudi Electricity Company to support the company's infrastructure projects to meet the growing demand for energy,'' stated Nawaf Al Zamil, vice president of Zamil Steel's Building Products Group. ''We look forward to working with SEC within the Saudi Arabian power generation sector, and are pleased to have been selected from a group of extremely qualified companies for this most prestigious project award.''

Press Release