Mayar’s subsidiary to manufacture elevators of Chinese firm in Saudi Arabia

Logo of Mayar Holding Co.

Mayar Holding Co. said that its subsidiary, Gulf Elevators & Escalators Co. Ltd signed a partnership agreement with China’s Shenyang Yuanda Intellectual Industry Group Co. to manufacture its elevators and escalators products in Saudi Arbia.

The company will also upgrade and develop the current elevator and escalator production lines, and transfer technology, as well as intellectual and engineering knowledge, Mayar said in a statement to Tadawul.

The deal is expected to have a positive impact on the company’s financial statements as of Q1 2025.

Mayar will produce BLT elevators and escalators, known for their unique capabilities in terms of speed, capacity, and diversity, at the company's factory in the Kingdom.

Shenyang Yuanda will upgrade production lines at Gulf Elevators factory and boost production capacity.

In addition, production lines will be automated to achieve a 30% reduction in total production costs. Knowledge, intellectual property, and engineering expertise will be transferred to develop elevator and escalator products.

The factory's workforce will also receive training.

The agreement covers the geographical regions of the Middle East, Africa, and Europe, excluding the Russian Federation.

It stipulates the transfer of a 10.5% stake in Gulf Elevators to Shenyang Yuanda.

Shenyang Yuanda, a public listed Chinese company, has been operating in the elevator and escalator manufacturing, engineering, and development sector since 2001. It is considered one of the largest companies in the industry, having contributed to significant projects across most countries worldwide.