Saudi's MMG signs deal with UAE telecoms firm
Engineering firm's link with Three W Network continues diversification
Mohammad Al Mojil, the Saudi construction engineering firm, has signed a joint venture agreement with a UAE-based telecommunications group to offer communications installations to its clients in the Kingdom.
The contractor will set up a company with Three W Network to provide networks of fibre-optic infrastructure, safety and security systems along with wireless networks. The venture will be equally owned.
Mohammad Al Mojil, which has a core specialism in the oil and gas sector, has attempted to diversify its operations across types of construction and countries by working with complementary companies. It also works across the industrial and marine sectors and has an office in Abu Dhabi to capture the infrastructure opportunities in the UAE capital.
Last month the company said it would, set up a company with National Holding, a UAE investment firm, to give the contractor a presence in the capital and target projects in the oil and gas, energy and utilities and petrochemicals sectors. It also signed a letter of intent with Korea’s Daelim Saudi Arabia to carry out mechanical and electrical work on projects in the western region.
Mohammad Al Mojil posted a net loss announced for the year 2010, SAR 179.5 million, compared to net profit of SAR 40.33 million in 2009.
The link with Three W Network “is a step in implementation of the new company's strategy to diversify sources of income in light of an urgent need for this type of service in local and regional markets”, the company told investors on the Tadawul stock exchange website.
Three W Network has provided such installations for projects in the Persian Gulf states, Egypt, Libya and possession of the offices of the engineering support and sales in Australia, Singapore and South Korea.
Meanwhile, Saudi Advanced Industries Company (SAIC) said its glass manufacturing subsidiary began operations of its glass furnace. Obeikan Glass Company, in which SAIC owns a 40% stake, will require 4-5 weeks until the furnace reaches maximum heat, so that it can produce floating glass within 2-3 weeks to fine tune the processes to produce glass.