Naqi Water signs SAR 3.9M contract to purchase, supply, install machines

Logo of Naqi Water Co.

Naqi Water Co. signed today, Sept. 2, a contract with Middle East Factory for Machines Co. (MEMCO) to purchase, supply, and install machines aimed at upgrading one of its existing production lines at its main plant in Qassim Province. The contract is valued at €900,000 (SAR 3.9 million).

In a statement to Tadawul, the company said the agreement covers the supply and installation of automated machines and units, enabling the production of bottles in various sizes.

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It also includes technical upgrades to filling and packaging systems to align with current operational requirements and Naqi Water’s strategic plans, while addressing market trends and customer needs.

The machines consist of automated filling and packaging equipment for bottled drinking water with aluminum heat-sealed caps, offering a reference production capacity of about 40,000 bottles per hour.

Naqi Water confirmed that the contract will be fully financed through internal resources without the need for external funding.

The financial and operational impact is expected to be reflected in the company’s results starting in H1 2026, once supply, installation, and commercial operations are completed.

The deal does not include any special conditions or unusual restrictions and is carried out under normal commercial terms.

Naqi Water emphasized that the deal was approved in accordance with the company’s approved policies and related-party procedures, in compliance with applicable laws, regulations, and market rules.

Naqi Water underlined that the deal was authorized in conformity with the company’s approved policies and related-party procedures, in compliance with applicable laws, regulations, and market rules.

This disclosure comes in line with the Capital Market Authority (CMA) Rules on the Offer of Securities and Continuing Obligations related to related-party transactions.

The company added that the assets purchase supports its strategy to meet growing demand for bottled water in various sizes, while maintaining overall production capacity and enhancing the efficiency and flexibility of existing lines.

MEMCO was chosen as the original and sole manufacturer and supplier of the equipment and spare parts compatible with the current line, with no alternative suppliers offering equivalent technical specifications.