Dutch group Stork inks Saudi JV deal
Jeddah, August 14, 2012
Netherlands-based Stork Technical Services has joined forces with Saudi Industrial Services Company (Sisco) to set up a SR25 million ($6.6 million) firm that will offer specialised technical services to oil and gas and water desalination units in the region.
Stork Technical Services is a wholly-owned subsidiary of Stork BV, a global provider of knowledge-based asset integrity management services for the oil and gas, power and chemical sectors.
As per the agreement, the new company will be named Stork Technical Services Saudi Arabia, in which Stork will have a 55 per cent stake, while the rest will be owned by Sisco.
The new JV company will be based in Jubail and will offer complete solutions bundled to serve high value apparatus and asset management.
A leading company in Saudi Arabia, Sisco undertakes large scale capital investment in desalination plants, ports and free zones, industrial estate development and IT projects.
Commenting on the JV, Sisco CEO Mohammed Mudarres said the company had been evaluating various opportunities in this area as part of its strategy to expand and diversify its business, and found these services to be in great demand in Saudi Arabia.
'We sealed the agreement with Stork Technical Services because of its excellent reputation and high quality performance in the area of providing specialized services,' he remarked.
Stork Technical Services CEO Douglas Meikle said his company's expansion in the Middle East and in particular Saudi Arabia was one of the key strategies the company had been planning for the last few years.
Stork through establishing its presence in the area will endeavor to transfer technical know-how by training Saudi youths in these specialized areas, said Meikle.
According to him, Saudi was one of the most promising markets in the region in terms of projects and expansions in the oil & gas, petrochemical and energy sectors.
The company will strive to recruit and train young Saudis in various technical, vocational and administrational areas, as it is considered one of the key strategies to sustain its business and growth in Saudi, he added.-TradeArabia News Service