Zamil Industrial Investment Company has signed a five-year strategic partnership with a state-backed industrial company in Ethopia that will see the Saudi giant’s products marketed throughout the East African state in exchange for project financing.
The listed manufacturing giant, which has business lines in steel, mirrors, glass, insulation and air conditioners, signed the US$300million agreement with Metals & Engineering Corporation yesterday in Addis Abbaba.
The partnership is based upon King Abdullah’s directions to the private sector to support the African nations, according to Nawaf M. Al Zamil, vice president of Zamil Steel’s Building Products Group.
The Dammam-based company will start supplying its products to METEC managed projects in Ethiopia towards the end of the second quarter. The first will be supply of pre-engineered buildings for six sugar factories with a total value of USD 18 million.
Zamil Industrial can supply all the necessary building material and contracting works to any project as part of its Total Solution capabilities, according to the company.
Last week Zamil Industrial announced a warning to investors that its net profits for the first quarter of 2011 may slump 35% against the same period of last year, as the company overcomes the three-pronged challenges of strong regional competition, rising commodity prices and civil unrest that has affected production of a plant in Egypt. Net profits for 2010 fell 8.3% against 2009.
Zamil Steel was “temporarily affected by the slowdown in the region but is confidently sustaining its leading position by securing similar long-term partnerships”, according to a statement to investors this morning.