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Amiantit sets up factories in Morocco and Algeria

Manufacturing plants will meet local demand for GRP pipes

Dammam, 29 March 2006: In line with growing worldwide demand for Amiantit glass reinforced polyester (GRP) pipes for water and sewage systems, Dammam-based Saudi Arabian Amiantit Company has announced that it is participating on an equal share basis in two joint venture partnerships to establish GRP pipe production plants in Morocco and Algeria.

The Moroccan manufacturing facility will be built in Casablanca at a cost of SAR 86,250,000 (USD 23 million) as a joint venture under the name of Amitech Maroc, a limited liability company in 50% - 50% partnership between Amiantit International Holding and Nareva Holding which is a 100 percent subsidiary of the ONA Moroccan Group. The new factory's first order is for 90 kilometres of GRP (glass reinforced polyester) large diameter pipes to transfer 45 million cubic metres of water per year from the Mohamed Mokhtar Soussi and Aloulouz dams to irrigate the Guerdane area near to Agadir, and 76 kilometres of GRP pipes for a distribution network covering an area of 10,000 hectares. The order is for a BOT (build, operate and transfer) project with a total contract value of SAR 294,450,000 (USD 77, 245,772) awarded to Amensous SA, in which Inframan, a 100% subsidiary of Amiantit, has 15% participation in the capital. Over the next five years Amiantit will be involved in further water and sewerage projects in Morocco

The factory to be built in Algeria will be located at Mostghanerm city and is a joint venture under the name of Amitech Algeria in 50% - 50% partnership between Amiantit International Holding and the Lakehal-Ayat family. It will cost around SAR 78,750,000 (USD 21 million) which is approximately the same amount as the value of the first order for 26 kilometres of GRP pipe to transfer water between Douera and El Harrach.

"Populations are increasing everywhere, resulting in ongoing expansion of public service infrastructures, and these two new manufacturing facilities are yet another step forward in our policy of strategic global expansion by meeting worldwide demand for Amiantit products through fulfilling local orders with local manufacture," said Eng. Fareed Al-Khalawi, Amiantit President & CEO. "At the same time, there is an increasing demand for pipe systems needed by the booming gas, oil and petrochemical industries and Amiantit is producing pipes in materials that have been specifically developed for the requirements of this sector."

Amiantit owns the world patents of Flowtite, the pipe manufacturing industry's foremost technology for producing GRP pipes, which are lightweight, easy to transport, easy to install, and extremely resistant to corrosion, with the added advantage of being environment-friendly. The company already has Amitech manufacturing facilities in Saudi Arabia, Argentina, Brazil, Germany, Poland, South Africa, Spain, USA, and Kazakhstan, plus AFIPL which is a GRP manufacturing joint venture in Goa, India. These, together with the new factories in Morocco and Algeria, will make a total of 12 countries where Amiantit GRP pipes are produced. Amiantit makes pipes in other materials, such as glass reinforced epoxy (GRE), concrete, polyethylene and ductile iron, and the total number of manufacturing facilities wholly owned or majority owned by Amiantit is 35 factories in 18 countries around the world.

In addition to being a global leader in pipe manufacturing, Amiantit undertakes BOT projects through AmiWater, a Jeddah-based holding company for a number of subsidiaries that are among the leading international specialists in water infrastructure projects for both the public and private sectors. This division of Amiantit has the expertise, technology and engineering skills to provide complete systems solutions on a global scale and is currently operating projects in Eastern Europe, Russia, Turkey, Greece, Africa, India, Indonesia and Thailand.

-Ends-

Note to Editor:
The Saudi Arabian Amiantit Company was established in 1968 at Dammam as a limited liability company and was converted into a joint stock company in 1994. It started with a paid-up share capital of SAR 4 million, which is currently standing at SAR 1.155 billion. Its shares are traded on the Saudi Stock Exchange. The prime activity of the company is to initiate and manage new industrial projects, and market its technologies and products. The company also monitors and controls the business of all the Amiantit Group subsidiaries through its corporate management office in Dammam, Saudi Arabia.

The Amiantit Group is a leading industrial organization with global strength and is comprised of companies in the Kingdom and abroad that manufacture various kinds of pipes, joints, fittings, tanks, rubber products and related accessories. Other activities include own and transfer technology, and water project consultancy and management all around the world.

For further information please contact:
Assim L. Alhakeem
Saudi Arabian Amiantit Company
Tel: 02 - 651 5676 Ext: #666
Fax: 02 - 651 6149
e-mail: info@amiantit.com

© Press Release 2006