Unimech Aerospace and Manufacturing Limited a manufacturer of high-precision engineering components and solutions, has invested SAR 15.3 million, equivalent to approximately INR 39.36 crore, in the first tranche of equity capital of its Saudi Arabian joint venture, Kanoo-Unimech Advanced Manufacturing Solutions. The investment is part of the planned SAR 60 million equity capital for the joint venture, which will be contributed by the partners in two tranches. The first tranche amounts to SAR 30 million. Unimech has contributed SAR 15.3 million, representing its 51% share, while Yusuf Bin Ahmed Kanoo Company Limited (YBAK) has contributed SAR 14.7 million for its 49% share.
Following the completion of the planned equity subscription, Unimech will hold a 51% stake in Kanoo-Unimech Advanced Manufacturing Solutions, while YBAK will hold the remaining 49%. The second tranche of SAR 30 million is planned to be contributed subsequently in line with the agreed investment schedule. This will include SAR 15.3 million from Unimech and SAR 14.7 million from YBAK.
The joint venture is establishing a local manufacturing platform in Saudi Arabia to serve the Oil & Gas industry and other industrial customers. Commercial production at the facility is expected to begin by late March or early April 2027. The investment forms part of Unimech’s strategy to expand its manufacturing presence in international markets and strengthen its position in high-value industrial sectors. Saudi Arabia is an important market for precision engineering and manufacturing, particularly because of the size and continued development of its Oil & Gas ecosystem.
Through the joint venture, Unimech plans to develop local manufacturing capabilities, work closely with customers in the region and participate in opportunities emerging from Saudi Arabia’s industrial development. The local facility is expected to provide the company with a base to serve customers in Saudi Arabia and the wider Middle East. With production scheduled to begin in the first quarter of 2027, the joint venture will provide a platform for Unimech to expand its regional operations.
Commenting on the development, Anil Kumar, Chairman and Managing Director, Unimech Aerospace and Manufacturing Limited, said, “The first tranche of equity contribution to our Saudi joint venture marks an important milestone in establishing Unimech’s manufacturing presence in the Middle East. With a total planned equity capital of SAR 60 million and Unimech holding a 51% stake in the JV, we are committed to building a meaningful local manufacturing presence in Saudi Arabia. As the facility progresses towards commercial production, we see the JV as an important platform to serve customers in the region and participate in the long-term opportunities emerging from Saudi Arabia’s Oil & Gas and industrial ecosystem.”
Unimech Aerospace and Manufacturing Limited manufactures high-precision components, assemblies and engineering solutions for aerospace, defence, energy and other technology-intensive industries. The company combines manufacturing capabilities, engineering expertise and quality standards to supply complex components to customers across global markets.
