Built to inform

Sign up for the daily newsletters

No, Thank you

Amiantit to close Saudi companies amid infra project 'slowdown'

Dammam-based group to shut pipeline and concrete supply units as accumulated losses since 2016 hit $137m

Saudi Arabia's Amiantit Group will close two companies [representational image].
CW Archives
Saudi Arabia's Amiantit Group will close two companies [representational image].

Saudi Arabia’s Amiantit Group has announced the shutdown of two units after posting $137m (SAR514.4m) in accumulated losses from 2016 to date.

According to a 21 February, 2019 missive on Tadawul, the company’s Ameron Saudi Arabia business in Dammam, and the Jeddah-based Saudi Arabia Concrete Products, will be closed. 

The Dammam company is a manufacturer of water transmission and distribution systems, while the Jeddah outfit manages concrete supply. Ameron’s closure will result in a loss of $2.3m (SAR8.6m), while the concrete company’s shutdown will have a negative financial impact of $1.4m (SAR5.4m). 

On 20 February, Amiantit Group said its accumulated loss was partly a result of “the continuation of the decline or slowdown in the infrastructure projects in [Saudi Arabia] during [...] 2016 and 2017”.

Amiantit added that its board had also recommended a capital reduction from $308m (SAR1.15bn) to $170.8m (SAR640.6m).

The Dammam and Jeddah companies’ closure will not significantly impact liabilities or operations, Amiantit said, adding that it expected the capital restructuring to “have a positive impact on the group’s financial performance”.

This is not the first time that financial headwinds have driven a restructuring operation at the Dammam-based group. In November 2011, Amiantit closed down three production lines in Bahrain due a slump in demand.

Most popular

Awards

Deadline approaches for CW Oman Awards 2020 in Muscat
You have until 20 January to submit your nominations for the ninth edition of the

Conferences

CW In Focus | Inside the Leaders in KSA Awards 2019 in Riyadh
Meet the winners in all 10 categories and learn more about Vision 2030 in this
CW In Focus | Leaders in Construction Summit UAE 2019
A roundup of Construction Week's annual summit that was held in Dubai this September

Latest Issue

Construction Week - Issue 758
Feb 08, 2020