ARTEX inks SAR 41.3M waiver to lease contract for spinning factory plot

Logo of ARTEX Industrial Investment Co.

ARTEX Industrial Investment Co. signed a binding agreement worth SAR 41.31 million with Lamina Co. Ltd. to waive the lease contract of a land plot belonging to the Saudi Authority for Industrial Cities and Technology (MODON) in the Riyadh Second Industrial City, which was formerly used as a spinning factory site.

The agreement covers the lease waiver and the sale of the buildings, equipment, and facilities to Lamina, in accordance with the terms and conditions and the fulfillment of all required regulatory procedures, according to a Tadawul filing today, May 7.

The deal is expected to have a positive financial impact that will be reflected in ARTEX’s results following the waiver’s completion.

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The waived site was used for more than 30 years and contains buildings and facilities that have exceeded their lifetimes. However, operable equipment is planned to be utilized at other locations, while the remaining assets will be disposed of in a way that achieves the best return for the company, according to the statement.

This came as part of ARTEX's plan to restructure assets and improve operational efficiency.

The company is working to integrate some modern production lines into other spinning sites, by using advanced equipment and techniques that do not require extensive areas, in line with modern industrial trends and in a bid to enhance operational efficiency, it added.

The agreement, according to ARTEX, came after securing the board's approval, pending completion of the necessary statutory procedures and obtaining the required go-aheads from the relevant authorities.

There are no related parties to the deal, said the company, adding that any material developments in this regard will be duly announced.