Lamprell and Asyad Holding to set up JV in KSA
Lamprell Saudi Arabia is core part of UAE-based construction company’s growth strategy, official says
Lamprell, the UAE-based provider of fabrication, engineering and contracting services, has said that it will join hands with Asyad Holdings to set up a joint venture company in the Kingdom of Saudi Arabia, as part of its regional expansion strategy.
Regarded as a key player in the kingdom, Asyad will bring significant regional knowledge and forms part of a group of companies managing a diversified portfolio of businesses, including a number of major projects in Saudi Arabia, a statement said.
It added that the establishment of the Lamprell Saudi Arabia office is a core part of the company’s growth strategy, where the primary focus to date has been on the investment into the joint venture between Saudi Aramco, Bahri and Hyundai Heavy Industries to develop a major maritime yard in the Arabian Gulf, known as International Maritime Industries.
It also comes as part of the Emirati company’s plans to increase its presence in the Kingdom, while also increasing investment there, it added. Lamprell said that it was also pursuing other opportunities to gain a stronger foothold in Saudi Arabia.
Among other things, it stressed that one objective was to qualify as a contractor to Saudi Aramco, on their Long-Term Agreement (LTA) programme, which is where contractors undertake offshore engineering, procurement and construction and installation projects in the oil and gas sector.
A key component of all LTA projects is Saudi Aramco’s In-Kingdom Total Value Add (IKTVA) programme, which is designed to encourage and increase local investment by the LTA contractors.
During the unveiling of its new KSA strategy, Lamprell said that it was taking steps to achieve IKTVA commitments by developing its in-Kingdom capabilities and by partnering with strong local businesses. The formation of Lamprell Saudi Arabia is a key component of its plan to reach its IKTVA goals, a senior official said.
“We are uniquely positioned to build our business in Saudi Arabia with the complementary opportunities of investment in the International Maritime Industries yard and our LTA bid to Saudi Aramco,” remarked Christopher McDonald, the chief executive of Lamprell.
“We are committed to developing our local capabilities and we are looking to realise these opportunities by aligning with strong partners in-Kingdom. We are therefore pleased to gain the support from Saudi investors, both as a major shareholder through Blofeld Investment Management and as our local partner in our Saudi joint venture,” noted McDonald.
Lamprell said Blofeld Investment Management, a private family fund based in Saudi Arabia, has increased its shareholding in the company to 10.08%
The key investment by Blofeld, a company owned by the same investor from Saudi Arabia which owns Asyad Holdings, and partnership with major Saudi businesses will help boost the company’s strategic exposure in the region, said McDonald.
“Much of Lamprell’s effort over the past two years focused on building a presence in the region and we are pleased to see our strategy supported by local partners,” he added.
