FIPCO announces agreements with major contractors

18/10/2017 09:58 AST

Further to FIPCO announcement published on Tadawul website on Tuesday, Jan. 31, 2017, which relates to signing of an agreement to take part in a project of producing a new product of the manufacturing (transforming) industries, FIPCO is pleased to announce that the deals and agreements with the major contractors to execute the construction and technical works have been closed and will take place accordingly.

FIPCO also finalized all procedures related to establishing the new company under the name of (FBC Industrial Co. ltd) with a primary capital of SAR 10,000 for the establishment stage. Based on The board of Directors reviewing, redesigning and reorganizing the recent drawing of the plant, in addition to the availability of utilizing the vacant spaces for the new production lines after obtaining the final approval of the related regulatory authorities, it has been strongly supported by the board of directors in order to decrease the operational expenses and to reduce the trial (tentative) production period.

Contrary to what was previously announced, the main product lines are decided to be supplied during the 1st quarter of 2018 instead of the 2nd quarter, while the trial production will start in the 2nd quarter of 2018 instead of the 3rd quarter of the same year, which will be positively reflected on the financial impact with an undetermined value for this stage.

Recently FIPCO arranges and employs the needed skilled people and qualified technician, in addition to attract the highly effective people of sales and marketing to achieve the goals of the project.

FIPCO is very keen to keep its shareholders updated with the latest developments by the way of paying a significant consideration to its relations with the supervising related authorities as well as having any of negative effects on the project processing.

FIPCO assures that no related parties will be involved, and any material developments in this regard will be announced in due course.

Tadawul