Al Kathiri Holding Company announces the approval of the Board of Directors to start a project to establish a factory to build and manufacture luxury yachts in the Third Industrial City in Jeddah.
| Element List | Explanation |
|---|---|
| Introduction | In line with the company’s strategy that seeks to grow and diversify its business portfolio, and with reference to Al Kathiri Holding Company’s announcement dated 14-04-1445 AH corresponding to 29-10-2023 AD regarding the approval of the Board of Directors to establish a 100% owned limited liability subsidiary (The Luxury Yacht of industry Co.).
The company would like to announce the launch of Its project to build a factory for the manufacture of luxury yachts, in one phase during the fiscal year 2024 AD, and after the company signed a land lease contract through the Saudi Authority for Industrial Cities and Technology Zones (Modon) with an area of 8,775 M² in the Third Industrial City in Jeddah. The factory's most important activities are the manufacture of luxury yachts, pleasure boat, pleasure boat family, fishing boats, jest ski and Jetties |
| Date of Board Resolution in Regard to the Project | 2024-02-28 Corresponding to 1445-08-18 |
| Project Start Date | March 2024 |
| Project Cost | 20 million SAR |
| Financing method for the project | Self-financing through the Alkathiri Holding |
| Expected completion date of the project | Q1/ 2025 |
| Expected Financial Impact of the Project on the Company’s Results | To be determined later |
| The Start of the Expected Impact of the Project on the Company’s Results | The financial impact of the project will appear starting in the second quarter of 2025 |
| Expected Date for the Pilot Production of the Project to Begin | Q1/ 2025 |
| Duration of the pilot production of the project | 4 months from the date of trial operation |
| Expected date for the commercial production of the project | Q2 /2025 |
| Executing Party/Counter Party in the Project/Contract | To be determined later |
| Related Parties | There are no related parties |
| Additional Information | This project comes within the company's strategy and plan to expand and diversify its investment portfolio. It is expected that the maximum production capacity of the project will reach 150 units annually by the end of the fourth quarter of 2025 AD, distributed among luxury yachts, pleasure boat, pleasure boat family, fishing boats, jest ski and Jetties.
Factory land area: 8,775 square meters in the Third Industrial City in Jeddah. Date of signing the industrial land lease contract with MODON: 02-27-2024 AD The value of the lease contract: 26,325 Saudi riyals annually for twenty years, in addition to an amount for the allocation of 8,775 Saudi riyals per month until the start of production or the completion of 24 months from the date of the contract, whichever comes first. Target market: The project targets building and manufacturing yachts for the Red Sea projects.
Any developments related to the project will be announced as they become available. |
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