| Element List | Explanation |
|---|---|
| Introduction | Sama Healthy Water Factory Company is pleased to announce the signing of a purchase agreement with the German company Krones AG to supply and install equipment for two new production lines for manufacturing water bottles in various sizes. This agreement aims to enable the company to expand its production capacity by increasing its current production volume and adding new bottles with high-quality standards, enhancing the company's competitiveness in the Saudi market and opening new horizons for its business. This step complements the company's strategic plan, which focuses on sustainable growth. This plan contributes to achieving the Kingdom's goals of raising production efficiency and keeping pace with Saudi Vision 2030, which aims to develop the industrial sector and enhance its contribution to the national economy. Under the agreement, the German company Krones AG will install and operate the new production lines after supplying them to the company, according to the highest quality and safety standards. It will also provide an experienced and qualified engineering team to train factory employees to operate the production lines efficiently and professionally. |
| Date of Announcement of the Award | 2025-04-29 Corresponding to 1446-11-01 |
| Contract Subject Matter | Signing a contract with the German company Krones AG to supply and install equipment for two new production lines for manufacturing healthy water bottles in various sizes: small, large, and medium. |
| The Entity with Which the Contract was Signed | KRONES AG |
| Date of Signing the Contract | 2025-04-29 Corresponding to 1446-11-01 |
| Contract Value | A total value of (9,000,000) nine million euros, “approximately equivalent to” (38,430,000) thirty-eight million, four hundred and thirty thousand Saudi riyals. |
| Contract Details | Signing an agreement with the German company Krones AG to supply and install equipment to establish two new production lines for manufacturing healthy water bottles in various sizes (small, large, and medium), in accordance with the standards and specifications in force in the Kingdom of Saudi Arabia. Payment Method: 1- Sama Healthy Water Factory Company will pay 15% of the total contract value, amounting to 1,350,000 (one million three hundred and fifty thousand euros), "approximately equivalent to" 5,764,500 (five million seven hundred and sixty-four thousand five hundred Saudi riyals), as an advance payment. 2- According to the agreement, 85% of the remaining contract value, amounting to 7,650,000 (seven million six hundred and fifty thousand euros), "approximately equivalent to" 32,665,500 (thirty-two million six hundred and sixty-five thousand five hundred Saudi riyals), will be financed under an export financing agreement concluded by the company with a first-class German bank. The financing amount will be paid directly to the German company Krones AG. |
| Contract Duration | One full year with an expected delivery date of late April 2026. |
| Financial Impact and the Relevant Period | The positive financial impact of the added production lines is expected to be reflected in the financial results during the second half of 2026. |
| Related Parties | nothing. |