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Logo of City Cement Company
City Cement Co., through its subsidiary, Green Solutions Environmental Services Co. (GSES), established Innovative Solutions for Environmental Services Co.
The new company, with a capital of SAR 6.77 million, is 29.4% owned by Green Solutions (a related party), 19.6% by Lechtenberg Middle East for Environmental Services Co. (a related party), and 51% by Tadweer Environmental Services Co.
Innovative Solutions will produce alternative fuel from waste and market it locally and internationally. The project details will be announced later, as the new entity will also contribute to reducing dependence on fossil fuels, carbon emissions, and contribute to the Kingdom's transformation into a circular economy in line with the outcomes of Saudi Vision 2030.
This also aligns with the company’s objectives regarding sustainability and its impact on attracting foreign investors in light of the commitment to apply sustainability standards.
GSES signed a settlement agreement with Lechtenberg Middle East to receive SAR 1.31 million in consideration of selling machinery and equipment, owned by GSES –after being evaluated by an independent accredited valuator - in favor of the Lechtenberg Middle East, which will in return contribute the price of machinery and equipment as an in-kind share in the new company.
Related parties include Green Solutions’ Chairman Badr Bin Omar Suleiman Al Abdullatif, where he owns a stake in the Al Abdullatif Holding Group (which owns above 5% in City Cement).
Also, Green Solutions board member Dirk Lichtenberg owns shares in Lechtenberg Holding Co.
City Cement will keep the market informed with the developments and expected positive financial impact later, the statement noted.
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