FIPCO concludes deals with major contractors for its new JV

Filling & Packaging Materials Co. (FIPCO) said it has reached agreements with the major contractors to execute the construction and technical works for its new manufacturing industries joint venture.

FIPCO has also finalized all procedures related to establishing the new company under the name of FBC Industrial Co. Ltd with an initial capital of SAR 10,000, the company said in a bourse statement.

The board of directors decided, after obtaining the final approval by related regulatory authorities, to set up the new plant in the vacant space within FIPCO’s plant to decrease the operational expenses and to reduce the trial production period.

Contrary to what was previously announced, the main product lines will be supplied during Q1 2018 instead of Q2, while the trial production is set to start in Q2 2018 rather than Q3 as announced before.

The new plant is expected to have a positive impact on the company’s financials. However, the effect cannot be determined at this stage, the statement added.

In January, FIPCO said it would invest SAR 122 million to own an 80 percent stake in a manufacturing industries JV with EIRAD Investment Co., Argaam reported.