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Logo of Jazan Development and Investment Co. (JAZADCO)
Jazan Development and Investment Co.'s (JAZADCO) board of directors approved the permanent closure of production line 1, which produces 18,000 water bottles of 300 ml, 500 ml and 600 ml per hour, according to a statement to Tadawul today, Sept. 3.
The production line is at JAZADCO’s drinking water bottling plant, which started operations in 2008.
For more news and details on the projects
The financial impact of this closure will be reflected in the Q3 2024 financials, with an estimated impact of SAR 9.94 million on asset impairment, it added.
This closure followed the earlier decision by the company's board of directors on December 29, 2022, to permanently shut down production line 2, which produced 12-liter mineral water bottles.
As a result, the value of the second production line was written off at SAR 5.97 million, as reflected in the audited financial statements for 2022.
The move is deemed a strategic response to the current competitive market conditions, characterized by oversupply and low selling prices, which have rendered the line economically unfeasible.
The combined impact of these closures will result in the cessation of JAZADCO’s water bottling business, it confirmed.
The company also said it remains committed to exploring new investment opportunities with positive returns to its shareholders, while adapting its operations to better serve the market.
Related News
JAZADCO stops second water bottling production line, sees SAR 5.97 mln financial impact |
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