Riyadh, April 15, 2008 - RDB, an Italian public company listed on the STAR Segment of the MTA, has entered into a 50/50 Joint Venture agreement with the El-Seif Group. The El Seif Group, a major Saudi Arabian company with headquarters in Riyadh, is a leader in the civil, industrial and military construction sectors, and an international supplier of medical and health equipment and hospital management services.
Under the joint venture agreement, RDB and the El-Seif Group intend to form the company, "RDB-EL SEIF", for the manufacture and supply of pre-cast concrete materials. These materials will be used in the construction of prefabricated buildings and structures related to civil works and industrial projects for the purpose of entering into the Saudi Arabia market which is currently undergoing strong growth.
Pending local licensing and approvals, the "RDB-EL SEIF" Company is expected to begin operations with an initial investment of approximately Euro 30 million for the construction of a first plant to be located in Riyadh. The first plant is expected to have a production capacity of approximately 130,000 m3 annually and a work force of about 500 employees. The plant is expected to be operational in April 2009. The investment will be financed through a combination of bank loans and self financing.
The business plan estimates annual revenues of approximately Euro 40 million with an ebitda margin of about 30%.
The Joint Venture agreement, signed between Renzo Arletti, Chief Executive Officer of RDB and Abdulaziz I. Al Khamis, Chief Executive Officer of El-Seif Investment, also provides for the possible construction of other production facilities in Saudi Arabia.
Under the joint venture, RDB will provide its technical and operational know-how in the field of prefabricated reinforced content and will be responsible for the development and oversight of the venture's technical aspects and operations, while El Seif will offer a commercial platform through its consolidated presence in the Saudi Arabia market.
The RDB-El SEIF joint venture will be able to use such experience and know-how to provide technologically advanced building solutions to the Saudi Arabia market.
"We are proud to have signed this strategic alliance with such a prestigious partner - one of the most important engineering and construction companies in the Saudi market", commented the CEO Renzo Arletti. "This agreement represents an extremely important strategic step for RDB, which up to now has focused on the domestic market" continued Arletti.
"The internationalisation, the growth and the expansion in a market with double-digit growth, such as the Saudi market, is a new challenge for the Group which one hundred years after its creation begins a new and promising chapter".
-Ends-
About RDB:
RDB is a prominent companies for the processing of prefabricated buildings, and one of the largest companies for the production of concrete block and ready-made thermal insulation in high-tech Italy, which does not harm the environment, which covers all the requirements of the domestic market and are widely deployed across inland sections and has an unspecified number of products, and starting from 2007 with applications sales value of € 380 million, and are characterized by their resistance to any temperature and fire multi Thicknesses and weight work and decorate designs, drawings, Hilton, which wants the customer and wall plates internal and external Finishing with luxurious Italian and several attractive colors of marble and stone imported from Italy and blocks light. The products have the highest world standards.
About El-Seif Group (ESEC):
El-Seif Group is a pioneer in the Saudi business community, including many of its business sectors, industrial and service, construction and civil defense, and others. Has several sensitive projects that depends on advanced technology in the Kingdom. Company started its activity in Saudi Arabia and the Middle East in 1951, specifically in the trade and transport sectors, then adding a further group of companies operating under the umbrella during the seventies through the introduction of technical capabilities and high administrative efficiency, and started working in the construction sector, operations and maintenance, health care and medical equipment, and hospital services and trade.
For more information:
Asmaa Al Hamad
Managing Director PR & Event management
Arabia Productions
Tel.: + 966 1 462 1126
Fax: + 966 1 461 3755
M. + 966 502 876 239
e-mail: asmaa@arabiaproductions.com
Nazeer Ahmed
Media relations
Arabia Productions
Tel.: + 966 1 462 1126
Fax: + 966 1 461 3755
M. + 966 567 493 139
e-mail: nazeer@arabiaproductions.com
© Press Release 2008
