Zamil Industrial Investment Company (Zamil Industrial) through Energy Central Saudi Arabia has signed on Tuesday 13 November 2007, a 22-year energy performance contract with Saudi Basic Industries Corporation (SABIC) for the complete outsourcing of process and comfort cooling and building plant to supply up to 20,000 tons of refrigeration at Saudi Iron & Steel Company (Hadeed), a wholly owned subsidiary of SABIC. The estimated annual value of this project is around SAR 42 million. State-of-the-art equipment and machinery will be used in the new plant which will reduce energy consumption and conserve the environment.
Commenting on this awarding, Mr. Abdulla M. Al Zamil, Chief Operating Officer at Zamil Industrial said: “This first-of-its-kind agreement in the Gulf region will usher a new era of utility outsourcing for large industrial and commercial players who want to focus on their own service delivery and would like to rely on specialized partners to support them in that quest.”
Due to the nature of this complex undertaking, the process took longer than expected but will yield enormous benefits to Hadeed and will serve as a template for many of the SABIC companies and the extended industrial conglomerates in Jubail and elsewhere. This ambitious project will significantly reduce energy consumption, and will help Hadeed focus on its vision of becoming the leading producer of steel products in the region
About Zamil Industrial
Zamil Industrial was founded in 1998. It is headquartered in Dammam, Kingdom of Saudi Arabia, and employs more than 8,200 people in 55 countries. As an international manufacturing and fabrication group, it provides leading air conditioning, pre-engineered steel buildings, structural steel products, process equipment, transmission and telecommunications towers, open web joists and decks, architectural glass processing, aerated concrete products and fiberglass insulation solutions to meet the requirements of the global construction industry through its four sector businesses: Zamil Air Conditioners (www.zamilac.com), Zamil Steel Industries (www.zamilsteel.com), Zamil Glass Industries (www.zamilglass.com) and Arabian Fiberglass Insulation Co. Ltd. (www.afico.com.sa).
For the year ended 31 December 2006, Zamil Industrial posted turnover of SAR 2.87 billion/USD 764.7 million, a growth of 21% over 2005, with net profit, after Zakat contribution, of SAR 191.7 million/USD 51.1 million. Post Zakat Earnings Per Share during 2006 grew to SAR 4.26/USD 1.14 from SAR 2.36/USD 0.63 representing 80.2 percent growth. Shareholders’ equity grew by 26.2% to SAR 741.5 million/USD 197.7 million. Export sales accounted for SAR 1105.6 million/USD 294.8 million representing 39% of total revenues and 18.4% growth over 2005. Zamil Industrial exports to more than 80 international markets.
Zamil Industrial shares are actively traded on the Saudi Stock Market. More information can be found at www.zamilindustrial.com.
