SAMA Water signs SAR 1.3M contract for work on 2 production lines

Logo of SAMA Healthy Water Factory Co.

SAMA Healthy Water Factory Co. agreed, on Dec. 17, with Germany-based Krones AG for additional works on the project to establish two new production lines.

The contract scope was expanded to include the manufacture and installation of additional packaging equipment in sizes different from those originally agreed.

In a statement to Tadawul, the company said the value of the additional works was set at EUR 300,000 (SAR 1.32 million).

Payments will follow the same method as in the original contract: an advance payment of 15%, equal to EUR 45,000 (SAR 198,600), and the remaining 85%, equal to EUR 255,000 (approximately SAR 1.13 million), will be paid through financing arranged by the company with a first-tier German bank, which will make direct payments to Krones AG.

The company added that the contract duration has been extended until the end of 2026, coinciding with the expected delivery date.

SAMA Water noted that the total project cost has increased to EUR 9.3 million (SAR 41.05 million) due to the agreement on additional works for the purchase and installation of packaging equipment in different sizes, valued at SAR 1.32 million.

The company expects the financial impact of the additional production lines to positively reflect in its financial results during H1 2027, following the contract extension.

The company will disclose any updates or related financial effects in due course, the statement added.

According to data available with Argaam, SAMA Water signed a purchase agreement in April with Krones AG to supply and install equipment for the establishment of two new production lines.

The lines will manufacture bottled water in various sizes—small, medium, and large—according to the standards and specifications in place in Saudi Arabia.

The total value of the agreement is EUR 9 million, equivalent to approximately SAR 38.43 million.