Saudi Ceramics notified of partnership feasibility halt

Logo of Saudi Ceramic Co. (Saudi Ceramics)

Saudi Ceramic Co. (Saudi Ceramics) recieved on Oct. 11, a notification from Eczacıbaşı Yapı Gereçleri A.Ş. (EYAP), a subsidiary of Turkey's Eczacıbaşı Group, regarding its decision to halt the feasibility study for a joint venture in Saudi Arabia. The planned 50/50 partnership was intended to manufacture and sell sanitary ware and related products. 

In a statement to a Tadawul,  the company pointed out that heightened economic and political uncertainties, coupled with an unclear outlook for the construction sector in Europe and Turkey, were the primary reasons behind this decision. 

Saudi Ceramics reassured investors that both parties would continue exploring other potential cooperation opportunities within the sanitary ware industry. 

Moreover, the company emphasized that this decision would not have a significant financial impact on its bottom line. 

As previously reported on Argaam.com, the parties signed a non-binding letter of intent in April 2023, to explore the possibility of establishing a joint venture in Saudi Arabia. 

The agreement included a provision to transfer all assets and manufacturing facilities of EYAP's sanitary ware division to the new company, subject to final agreement. 

In October 2023, the companies signed a preliminary non-binding agreement, which was subsequently extended until the end of 2024.