Swiss firm Sulzer inks deal to purchase majority of Saudi Pump Factory
Sulzer has entered a deal to acquire a 75% holding in Saudi Pump Factory with the company's owner and founder Nabil Al Hashim. The transaction, which is valued at CHF33 million, is expected to close by the second quarter of 2014, according to The Wall Street Transcript (TWST).
Saudi Pump Factory is based in Riyadh, Saudi Arabia, The company currently employs 170 workers. In 2012, the firm's sales reached around CHF25 million, the report detailed.
The purchase is part of Sulzer's strategy to focus on oil, gas, power, and water key markets because these are the major industries in the fast growing economy of Saudi Arabia. Sulzer will also establish the local production in its joint venture company, Sulzer Saudi Pump Company (SSPC). The latter will become the first complete pump manufacturer of API pumps in Saudi Arabia and will serve one of the biggest oil and gas markets in the world, the report explained.
The facility in Riyadh manufactures all kinds of centrifugal pumps to ASME and API standard. The establishment will become part of the global production network of Sulzer. The company will also build a pump test facility to test the standard of its products, TWST reported.