Naqi Water signs EUR 114,600 contract addendum for machinery procurement

Logo of Naqi Water Co.

Naqi Water Co. signed today, June 25, an addendum to its previously announced contract for the purchase, supply, and installation of machinery at its main plant, covering additional technical upgrades to the machinery and production line, at an incremental value of EUR 114,600.

In a statement on Tadawul, the company said the additional costs are limited to the value of the contract addendum, adding that the upgrades are aimed at enhancing operational efficiency, improving raw material utilization, and reducing plastic consumption in line with its plans to develop production processes and optimize resource use.

The additional works include technical updates to the machinery and production line designed to support more efficient operations and improve production performance.

Naqi Water said the timeline changed due to the implementation of the additional technical works and modifications included in the contract addendum, which require extra time for execution and commissioning.

The company said on-site work is proceeding as planned, with supply, installation, and commercial operation now expected to be completed in the first half of 2027.

Naqi Water said the additional costs stem from the contract addendum for extra technical works and upgrades under the project, aimed at improving operational efficiency, optimizing raw material usage, and reducing plastic consumption.

The company added that the delay is linked to the implementation of the additional works and technical modifications. As a result, the expected start of the production line’s financial and operational impact has been pushed to the first half of 2027.

Naqi Water said the contract addendum was signed with a related party, as a major shareholder in Middle East Machinery Factory Co. Ltd. (MEMCO) owns a 50% stake in the company and also holds a 50% stake in Seqa United Group, which in turn owns 35% of Naqi Water.

The company said the transaction was approved under its policies and related-party procedures, in compliance with applicable regulations and market rules. The disclosure was made in line with the rules of the Capital Market Authority (CMA) on related-party transactions and continuous disclosure obligations.

In September 2025, Naqi Water signed a contract with MEMCO for the purchase, supply, and installation of machinery to upgrade one of the existing production lines at its main plant in Qassim for EUR 900,000 (SAR 3.9 million), according to Argaam’s data.