Nusaned signs deal to promote local PPE production
RIYADH, December 21, 2020
Nusaned Investment, a Sabic-owned investment company, has signed an investment agreement with Abdulaziz and Brothers Company (A&BC) to own and operate a manufacturing facility of personal protective equipment (PPE).
The deal between Nusaned Investment, through Nusaned Fund managed by Albilad Capital, and A&BC will further strengthen the position of the company and accelerate its development as well as its regional and domestic outreach.
Located in Jubail, A&BC is a new manufacturing facility specialised in producing PPE specifically helmets, protective glasses and cut resistant gloves for the industrial and construction sectors. It will be one of the first local PPE producers in the Kingdom.
A&BC has also entered into an agreement with a global leader in the PPE industry.
“The investment agreement is in line with Nusaned Investment guidelines and aligns with Sabic’s localisation programme as it presents a great import substitution opportunity in the personal protective equipment and high localisation potential enabling one of the objectives of Saudi Vision 2030,” said Faisal Albahair, CEO, Nusaned Investment.
“The Saudi PPE market is valued at around SR1.46 billion ($390 million) with insufficient local production to meet the growing demand for helmets, gloves or glasses. This agreement will make a notable contribution to local content, serving the economic diversification objectives of the Kingdom,” said Fahad Alnaeem, CIO, Nusaned Investment.
As per the agreement, Nusaned Investment, in addition to providing equity funding for the PPE project, will also offer tailored support under Nusaned’s umbrella including human resource support by assisting A&BC in attracting and hiring necessary talent and facilitate the training of new hires through the use of Sabic training programmes.
The A&BC agreement is aligned strategically with both KSA and Sabic objectives to support local content and the National Industrial Development and Logistics Program’s ambitions of transforming the Kingdom into an export hub and promoting local content in the industrial sector. –Tradearabia News Service
