Mubasher TV
Contact Us Advertising   العربية

Saudi Ground Services Company announces the singing of a Joint Venture Agreement with TLD Group to establish a limited liability company to provide ground handling equipment maintenance services in all airport in the Kingdom of Saudi Arabia

SGS 4031 0.86% 29.40 0.25
Element List Explanation
Announcement Detail In continuation of the company's efforts to elevate the quality and efficiency of the services provided to its clients through the transfer of technology and best practices, and in line with its strategy of investing in advance and sustainable technology solutions for growth and diversification of revenue, the Saudi Ground Services Company (the company) announces the signing of a Joint Venture Agreement with the French TLD Group to establish a limited liability company (The Partnership), under the name of TLD Arabia for Equipment Services (The New Company), that will provide digitalization and maintenance services specialized in airport solutions and ground handling equipment for the Company and others in all airports in the Kingdom of Saudi Arabia.

The New Company will be established with a share capital of (1,000,000) Saudi riyals divided into (1,000) shares, with a value of each share (1,000) Saudi riyals. The Saudi Ground Services Company will own (50%) of the total share capital of the new company, while TLD Group will own (50%). The new company will be funded by the internal resources of both partners of the Joint Venture Agreement in according to the percentage of their ownership in the New Company.

It is expected that the registration process of the New Company will be completed during the third quarter of current year, and the operations to commence in the fourth quarter of this year. Further, a positive financial impact of this partnership is expected to be realized by second quarter of 2021.

The partnership aims to make a quantum leap in the ground handling and airport solution sector in the Kingdom by providing competitive services in all airport in in the field of digitalization and maintenance of equipment and technologies specialized in this sector through transferring and localizing the latest elite TLD Group’s technologies. The partnership will result in a positive impact in reducing operating costs while elevating the level and standards of the quality of service and ensuring a sustainable and reliable maintenance of the company's equipment and property.

In the medium term, the partnership aims to expand and become a regional hub that provides the best competitive services to neighboring countries, in addition to be a manufacturer and exporter of the latest ground handling equipment through a technology transfer program. Further, it aims to collaborate in specialized R&D that serves the local and regional markets in the arena of autonomous and eco-friendly equipment, which TLD Group is a pioneer in.

TLD Group is a French Company and one of the largest manufacturers of ground services equipment in the world with a history exceeding 60 years. TLD Group is one of the companies of Alvest Group that has a revenue of €700 million. TLD Group has 10 different factories around the world, and multiple strategic partnerships with developers of various technical services in this field. TLD Group equipment accounts for nearly 40% of the total size of the motorized ground handling equipment market in the Middle East.

This partnership is one of the strategic initiatives undertaken by the Saudi Ground Services Company to contribute toward achieving a balanced growth of the air transportation ecosystem, embarking on Vision 2030 that aims to transform the Kingdom into an leading industrial power and international logistic platform.

The Saudi Ground Services Company will announce any material development related to this partnership in accordance with the regulations and instructions issued by the relevant authorities.

Comments