Unimech Aerospace and Manufacturing Ltd has made a significant move in expanding its international footprint by investing Rs 39.36 crore into its Saudi joint venture, Kanoo-Unimech Advanced Manufacturing Solutions. This investment marks the first tranche of a planned equity capital of SAR 60 million, with Unimech holding a 51% stake in the venture.
Strategic Investment in Saudi JV
Unimech's strategic investment aims to establish a local manufacturing platform in Saudi Arabia, focusing on precision engineering for the oil and gas sector. The facility is located in Dammam and is expected to commence commercial production by late March or early April 2027.
Market Expansion and Industry Impact
As part of its long-term strategy, Unimech is building a local manufacturing presence in key international markets. This JV with Yusuf Bin Ahmed Kanoo Company will enable the company to serve customers in the Gulf region and capitalize on Saudi Arabia's growing industrial and energy ecosystem.
Commercial Outlook
The second tranche of SAR 30 million, comprising SAR 15.3 million from Unimech, is scheduled to be contributed later. This move aligns with Unimech's goal of strengthening its position in high-value industrial sectors and expanding its global manufacturing capabilities.