RIYADH, 2 December 2007 — As part of an ambitious industrial expansion plan, Al-Rajhi Investment Group (ARIG) and Erne Fittings GmbH of Austria have signed an agreement to establish a joint company and plant in Jubail industrial city. On completion, this joint venture entity will become the first butt-welding fittings factory in the Middle East with a substantial production capacity of butt-welding fittings for power and oil sectors.
“Erne Fittings will work as a partner to execute the project, which will deliver the whole range of approved butt-welding fittings for power generation, processing and oil & gas industries at competitive prices,” said Ernst Bitsche, Erne’s president, here yesterday. Bitsche said the construction on this project will be completed by early 2008. He said that Erne will supervise the project execution and transfer its technology.
Spelling out the features of Al-Rajhi-Erne partnership, he said that “we are pleased to forge closer cooperation with such a prominent Saudi partner”. “In the past, we served our customers in the Middle East with the help of our European partners and now it will be possible to serve and supply the local market after entering into the business agreement with Al-Rajhi,” he noted.
“Butt-welding fittings used to be imported because there are no local manufacturers in Saudi Arabia,” he said.
“The factory will first cater to the needs of Saudi market, while it aims to export its products to other countries in the Middle East and Asia”, said Faisal Al-Rajhi of Al-Rajhi Investment Group.
Established in 1920, Erne industrial group spans the fitting and automotive sectors. As a manufacturer and supplier of butt-welding fittings, the production takes place in it’s three plants. The Schlins/Austria based company also has offices in Houston and Shanghai. Its technical competence in manufacturing and application are used worldwide in power stations, oil and gas fields, pipelines, refineries, chemical plants and shipping.
