Gas signs JV agreement to establish company to manufacture various instrumentation fittings, with a capital of SAR 5 mln

Gas Arabian Services Co. (GAS) announced on Wednesday the signing of a Joint Venture Agreement on 22-08-2023 with Tubefit Engineers, India, to establish a limited liability company (The New Company) for manufacturing of various instrumentation fittings and valves under the company name “Tubefit Arabia Factory LLC”. The New Company will be headquartered in the Kingdom of Saudi Arabia.

The Company explained Today on Tadawul that the New Company’s capital will amount to SAR 5 million upon establishment, with 53% ownership for Tubefit Engineers, India and 47% ownership for GAS.

And added that the GAS would finance its share of this investment, totalling SAR 2.35 million, from its own resources.

The New Company is expected to have a positive overall financial impact on GAS in the long term. However, the establishment of the new company is dependent on obtaining customary regulatory approvals, and satisfactory completion of the conditions in the Joint Venture Agreement.