The investment is Unimech’s contribution to the first tranche of equity capital for Kanoo-Unimech Advanced Manufacturing Solutions, the company said.
The first tranche totals SAR 30 million, with Unimech contributing SAR 15.3 million for a 51% stake and YBAK contributing SAR 14.7 million for the remaining 49%.
The two partners have planned total equity capital of SAR 60 million, to be invested in two tranches. The second tranche of SAR 30 million will comprise another SAR 15.3 million from Unimech and SAR 14.7 million from YBAK.
Once the planned investment is completed, Unimech will hold 51% of the joint venture, while YBAK will own 49%.
Saudi facility to start production in 2027
The joint venture’s facility is expected to begin commercial production by late March or early April 2027.
It will manufacture precision-engineered components for the oil and gas industry in Saudi Arabia.
Unimech said the investment is part of its strategy to build manufacturing operations in international markets and expand into more industrial sectors.“The first tranche of equity contribution to our Saudi joint venture marks an important milestone in establishing Unimech’s manufacturing presence in the Middle East,” Anil Kumar, Chairman and Managing Director of Unimech Aerospace and Manufacturing, said.
“With a total planned equity capital of SAR 60 million and Unimech holding a 51% stake in the JV, we are committed to building a meaningful local manufacturing presence in Saudi Arabia,” he added.
Kumar said the joint venture would provide a platform to serve customers in the region and tap opportunities emerging from Saudi Arabia’s oil and gas and broader industrial sectors as the facility moves towards commercial production.
Unimech Aerospace and Manufacturing shares closed 2.60% higher at ₹1,768.90 on the NSE on October 1.
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