| Element List | Explanation |
|---|---|
| Announcement Detail | Jazan Development and Investment Company announces that the Board of Directors has approved the permanent closure of the first production line, which produces 18,000 bottles per hour for 300 ml, 500 ml and 600 ml packages, in our drinking water bottling factory, which has been in operation since 2008. This decision was made on September 3, 2024 at 2:31 PM.
This closure follows the earlier decision by the Board of Directors on 29 December 2022 to permanently stop the operation of the second production line, which produced 12-liter mineral water bottles. As a result, the value of the second production line was impaired by an amount of SAR 5,972,564, as reflected in the audited financial statements for the year 2022.
The closure is 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. The financial impact of the first line's closure will be reflected in the financial statements for the third quarter of 2024, with an estimated effect of SAR 9,937,055 on impairment of assets.
The company remains committed to exploring new investment opportunities which have positive returns to the shareholders and adapt its operations to better serve the market. |