RIYADH, 8 November 2006 — Alkhorayef Commercial Co. Ltd signed a strategic partnership deal with KSB International. This was announced at a press conference late Monday evening. “The partnership deal is between two companies working in the same field of oil, agriculture, water desalination, and sewage,” said Abdulrahman Alkhorayef, chairman of Alkhorayef Group.
According to the Alhorayef’s president and executive manager for manufacturing affairs, Muhammad Alkhorayef, the company currently manufactures turbine pumps, gears, heavy equipment, steel pipes, as well as irrigation equipment. “The activities of the company still revolve around providing the Kingdom’s needs in engineering products,” said Muhammad Alkhorayef. He noted the importance of importing technology, saying that it would help reduce expenses when items were manufactured locally.
“Thanks to God, we have managed to gain a foothold in international market,” he added, saying that the company was now exporting polyethylene pipes to international markets from its factories in the Central and Eastern Province.
Franz Bernsteiner, KSB president of Middle East and Africa region, said the partnership would provide a good opportunity to enhance both the companies future.
He said that Alkhorayef Co. was familiar with international companies, adding that the company was well-known in the region for its products. “For KSB, it is a good opportunity to have found an excellent partnership,” he said, adding the Kingdom’s market was “one of the most interesting markets in the world.” He also lauded the Kingdom’s pioneering efforts in the fields of industrial development, pure industry, chemical refinery, as well as water desalination plants.
Asked about the company’s preparations to go public after signing a deal with the Saudi Hollandi Bank several months ago as its IPO manager, Abdulrahman Alkhorayef said: “We expect that by mid-next year the group will have completed its file to present it to the Saudi Capital Market for approval.” He said the company intended to designate 30 percent of its shares for public offering. “We could well be the first company in the Kingdom to give five percent of the shares to Saudis working in the group,” he said.