East Pipes signs SAR 8.9M material handling equipment agreements

Logo of East Pipes Integrated Co. 

East Pipes Integrated Company for Industry (East Pipes) signed today, July 19, agreements with selected suppliers to secure the necessary arrangements for acquiring strategic material handling assets.

In a statement to Tadawul, the company said it signed an agreement with Saudi Liebherr at a total value of about SAR 7.2 million, excluding value-added tax (VAT), and another agreement with US-based Vacuworx at a total value of about SAR 1.73 million, excluding VAT.

The company said the agreements are part of the latest developments related to the project to acquire strategic material handling assets.

There are no additional costs related to the development beyond those previously announced, it added.

According to Argaam, East Pipes’ board had approved last January the acquisition of strategic assets and material handling equipment worth SAR 33.6 million, with the aim of developing the company’s logistics infrastructure and rationalizing operating costs. The company announced last March that the completion of agreements with suppliers was delayed due to geopolitical developments and disruptions in global supply chains, while it continues to communicate with suppliers to complete the necessary arrangements.