SVCP, Qatar's Laffan Pipes set up industrial JV in Saudi Arabia

Logo of Saudi Vitrified Clay Pipes Co. (SVCP)

Saudi Vitrified Clay Pipes Co. (SVCP) signed today, Aug. 12, a partnership agreement with Qatar-based Laffan Pipes Factory Co. (LPF).

Under the agreement, LPF will acquire a 45% ownership stake in Laffan Pipes Co. (Laffan Co. Saudi), according to a statement to Tadawul.

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Laffan Saudi Co. was established on June 3, 2024 and is wholly owned by SVCP.

Laffan Qatar will pay for its stake by transferring the production lines of its Doha plant to produce high-density plastic pipes and accessories to the ownership of Laffan Co. Saudi.

SVCP will hold a 55% stake in the joint venture, while Qatar’s Laffan Pipes will own the remaining 45%.

According to data available with Argaam, SVCP signed, on Feb. 14, a memorandum of understanding (MoU) with LPF to establish an industrial joint venture, which will produce and trade high-density pipe products and accessories.

LPF is involved in establishing and managing plastic pipe products factories and manufacturing plastic accessories, rubber and plastic products, as well as various plastic products with the latest technology.