Atlas Elevators signs contracts with Dongnan, Suzhou Xinda

The contract entails that Atlas Elevator would be an authorized agent for Dongnan, performing sale, promotion, marketing and after-sales services, in Saudi Arabia and other GGC countries.

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Dongnan is a Chinese company based in Suzhou and is one of the leading manufacturers of elevators and escalators.

In a separate statement to Tadawul, Atlas Elevators announced signing a technology cooperation and product supply agreement with Suzhou Xinda Escalator Supplies Co.

The agreement aims to enhance collaboration in escalator and walkway systems, including structural designs, manufacturing blueprints, and original equipment production. It also includes training Atlas Elevators' engineers in the production, assembly, and testing of escalator components to ensure high-quality products, enabling the company to compete robustly in the Saudi market and achieve its strategic goals.

Atlas Elevators shall deposit $20,000 as a security deposit in Suzhou Xinda’s accounts. Atlas Elevators is required to purchase at least 80 sets of escalator parts annually. If the purchase threshold is met, Suzhou Xinda shall refund the deposit to Atlas Elevators.

Suzhou Xinda shall provide a two-week training program at their factory for Atlas Elevators engineers, covering the production, assembly, and testing of escalators.

Suzhou Xinda shall supply structural and assembly blueprints, component lists, and details of the different types of commercial escalators.

The duration of both contracts is 10 years each. The value cannot be determined at present as it depends on the value of products sold in the period from 2025 to 2035.

The relevant financial impact is expected to appear in H1 2025.

The contracts included no related parties, the statement added.