The SR15-million plant is likely to be set up within a year. It will produce carbon steel pipe and fitting products.
The agreement between Pantech and Saudi Arabia's Abdul Rahman Al-Otaishan Trading Group was signed on Monday in Kuala Lumpur in the presence of Malaysian Deputy Finance Minister Wira Chor Chee Heung.
"We are looking forward to exciting business opportunities coming from Saudi Arabia and the surrounding region. Once the plant is ready for operation, the second phase may start, probably in one to two years' time," Adrian Tan, executive director of Pantech Group Holdings Bhd, told a press conference.
This will be the first overseas investment by Pantech, which expects the Saudi plant to generate revenue of SR50 million in the first year of operation.
While Pantech is a pipes and fittings maker, Dammam-based Otaishan Trading is involved in oil and gas, petrochemical industries as well as logistics, transportation and industrial specialty services in Saudi Arabia and GCC countries.
According to Malaysian newspapers, Pantech representatives will visit Dammam next month to select a suitable land for the plant, said Tan.
The Malaysian company's Saudi subsidiary Pantech International (KSA) and Otaishan Trading also signed an agency agreement to distribute Pantech products in Saudi Arabia and other Gulf countries.
