Amiantit subsidiary told to pay Iraq subcontractor SAR 110 mln

Saudi Arabian Amiantit Co. said a court has ordered its subsidiary PWT GmbH to pay IQD 32.7 billion (SAR 110.8 million) as compensation to a subcontractor related to a project in Iraq.

The subcontractor has already received IQD 71.9 billion (SAR 71.9 million) mostly as advance payments from the owner of the project, Amiantit said in a bourse statement.

PWT plans to appeal the ruling in a higher court. Procedures are expected to take four weeks.

Amiantit and PWT have decided to increase provisioning for this litigation by SAR 28.4 million to SAR 55.4 million, the pipe manufacturer added. Earlier, the company said it expects a SAR 27 million financial impact from the legal case.

PWT GmbH is 100 percent owned by Amiantit.