Riyadh - Mubasher: Saudi Ground Services Company (SGS) inked a joint venture (JV) agreement with France’s TLD Group to found a limited liability company that provides digitalisation and maintenance services specialised in airport solutions and ground handling equipment for SGS and other firms in all Saudi airports.

The new company, called TLD Arabia for Equipment Services, will be established with a share capital of SAR 1 million, divided into 1,000 shares with a par value of SAR 1,000 per share, according to a bourse statement on Monday.

Each of the two parties will own 50% of the total share capital of the new company. The new company will be financed by the internal resources of both partners.

The registration process of the new investment is expected to complete during the third quarter of 2020 while operations may begin in the fourth quarter of this year. Further, a positive financial impact of this partnership is expected to be realised by the second quarter of 2021.

The investment comes as part of SGS efforts to raise the quality and efficiency of the services provided to its clients through the transfer of technology and best practices, in line with its strategy to invest in advanced and sustainable technology solutions for growth and diversification of revenue.

TLD Group is one of the world’s largest manufacturers of ground services equipment with a history of more than 60 years. The group has 10 different factories around the world and its equipment accounts for nearly 40% of the total size of the motorised ground handling equipment market in the Middle East.