Zamil Industrial acquires controlling stake in AFICO
Thursday, 16th February 2006
Share purchase from Amiantit group a strategic capital investment
Zamil Industrial Investment Company (ZIIC) has made a strategic capital investment in the Arabian Fiberglass Insulation Company (AFICO) of Saudi Arabia. The outright purchase of all 51% of shares for SR 65 million (USD 17.3 million), from previous owner, Saudi Arabian Amiantit Company (a Saudi Joint Company), gives ZIIC majority control in AFICO with Owens Corning Cayman (a wholly owned subsidiary of Owens Corning USA), the world leader in the technology of manufacturing fiberglass products, holding the remaining 49% stake.
The acquisition is an ideal complement to ZIIC's sector businesses and leadership in the steel and air conditioning industries and according to Abdulla Al Zamil, Chief Operating Officer of ZIIC, will result in a more comprehensive, competitive and cost-effective 'go to market' customer proposition.
"This acquisition is consistent with our strategic vision and plan to expand regionally and globally beyond the more than 80 markets our sector businesses currently serve. In addition to complementing our base products, this move marks our expansion into building material components - which AFICO is renowned for - and will contribute towards enhancing the total solutions approach of our activities," said Abdulla Al Zamil.
The stake in AFICO is set to strengthen ZIIC's leadership in the steel fabrication industry where its activities span pre-engineered steel buildings, structural steel and transmission and telecommunication towers. In the air conditioning industry AFICO's insulation materials will be integral to the commercial and consumer products produced by Zamil Air Conditioners.
ZIIC has already completed an expansion program at its various manufacturing facilities in Saudi Arabia and it has commenced the construction of new factories for its operations in the UAE, India and Vietnam. AFICO components will also be used in the production environments at these regional and international locations, in a development which it is anticipated will also increase demand for additional production output at AFICO's facilities.
Khaled Al Rabih, Chief Financial Officer, of Amiantit Group, stated: "This transaction fulfills both of our strategic plans as it allows us to focus on our core competency business of pipe manufacturing and water management, while empowering ZIIC in its quest to further extend the concept of its total solutions approach."
A ceremony marking the occasion took place on 15 February at the Head Office of Amiantit Group, headed by Abdulla Al Zamil of the ZIIC Corporate Team. Khaled Al Rabih represented Amiantit Group.
About Arabian Fiberglass Insulation Co. Ltd.
Under licence from Owens Corning Cayman (a wholly owned subsidiary of the Owens Corning USA), Arabian Fiberglass Insulation Co. Ltd., (AFICO) manufactures premium quality glass wool insulation products for use in industrial and commercial applications. It is also the only manufacturer of fiberglass insulation products in Saudi Arabia. The company was established in 1981 with headquarters and manufacturing facilities located in Dammam, Saudi Arabia and sales offices in Dammam, Riyadh, Jeddah, Dubai and Beirut.
