Update on Joint Venture in Saudi Arabia

Lamprell has just provided an update on its participation in the joint venture (JV) with its partners, Saudi Aramco Oil Company, the National Shipping Company of Saudi Arabia, and Hyundai Heavy Industries Co. Ltd., for the establishment of the major maritime yard at the Ras Al Khair site in eastern Saudi Arabia.

In relation to the shareholders’ agreement, we are pleased to advise that all conditions precedent have been completed, meaning that the JV company “International Maritime Industries Company” (IMI) can formally commence business,” reported Lamprell.

An important condition was the entry by IMI into the loan agreement with the proposed Government lender, the Saudi Industrial Development Fund.

In addition to the previously mentioned offtake agreements and significant investment made by the Saudi government in the facility’s infrastructure, the loan agreement is expected be a cornerstone for the success of the IMI yard.

Lamprell has been working closely with its partners on the establishment of the IMI business over the past few months and we are very pleased to see such tangible progress towards the operational phase, now that the conditions under the shareholders’ agreement have been completed,” said Christopher McDonald, CEO, Lamprell,

The construction process at the site is under way with dredging and associated activities in progress. The partners have made significant progress in creating the business infrastructure, including the management organisation, the internal governance structure and the detailed business plan.