Advanced Building Industries Co. — Capital/Financing Update 2014

Sep 4, 2014

ZAMIL INDUSTRIAL SUBSIDIARY AWARDED SAR 134.5 MILLION CONTRACT WITH MEEDCO TO SUPPLY STEEL LATTICE TOWERS FOR POWER TRANSMISSION

2240 · 04/09/2014 08:25:21 · Announcement #35546 · View on Saudi Exchange

ZAMIL INDUSTRIAL SUBSIDIARY AWARDED SAR 134.5 MILLION CONTRACT WITH MEEDCO TO SUPPLY STEEL LATTICE TOWERS FOR POWER TRANSMISSION

Zamil Towers & Galvanizing Company Ltd., a fully owned subsidiary of Zamil Industrial Investment Co. (Zamil Industrial), has been awarded a contract worth approximately SAR 134.5 million (USD 35.88 million) by the Middle East Engineering and Development Co. Ltd. (MEEDCO) to supply lattice towers and gantries for the 380kV double circuit overhead transmission line between Tabuk Bulk Supply Point (BSP) and Tabarjal BSP in the northern region of Saudi Arabia.

The discussions have been concluded and the contract was signed on 3 September 2014, in Dammam, Saudi Arabia, and it is expected to have a positive impact on the company's consolidated financials upon completion of each stage. The duration of the contract is 16 months, with the company set to begin supply of the towers and gantries in the fourth quarter of 2014. Shipments will continue until the completion of the project, which is expected to occur near the end of the fourth quarter of 2015.

According to the contract, Zamil Towers & Galvanizing Company will supply over 26,000 metric tons of lattice steel towers and low level gantries for the construction of the 380kV double circuit overhead transmission line between Tabuk Bulk Supply Point (BSP) and Tabarjal BSP owned by the Saudi Electricity Company (SEC). The project will link the generating plants in Tabuk and Tabarjal and will streamline the operation of the Kingdom's electrical power system by facilitating the exchange of electricity between regions.

((This contract award makes Zamil Towers & Galvanizing a key participant in the infrastructure development of Saudi Arabia,)) said Osama Bunyan, Chief Operating Officer of Zamil Industrial. ((We anticipate smooth cooperation with MEEDCO and SEC as we work to provide the finest products and services for use in this important endeavor.))

Zamil Towers & Galvanizing Company has been providing design, manufacturing and hot dip galvanizing of lattice steel structures for power transmission lines and telecom companies, gantries, and support structures for substations since 1985. The company also provides type testing of power transmission line towers at independent test stations in compliance with international standards as well as telecom and IBS passive and active solutions. During its 29 years of operation, Zamil Towers & Galvanizing has supplied approximately 1,000,000 MT of lattice steel structures, most of which have been exported to 35 different countries around the globe.

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