Riyadh, KSA/Karachi: A letter to the Pakistan Stock Exchange (PSX) was sent on 17 April 2023, from the company secretary of Avanceon Limited Ahsan Khalil, disclosing the decision of a new joint venture agreement by Avanceon Saudi for Energy Company, a fully owned subsidiary of Avanceon Limited, and ZOMCO, a fully owned subsidiary of the Zamil Group.
The letter informed that the two companies, in accordance with Sec 96 of Securities Act 2015 and clause 5.6.1(a) of code of corporate governance contained in the PSX Rule Book, have reached an agreement that aims to expand project execution footprint in the Kingdom of Saudi Arabia (KSA).
It was further communicated that the joint venture will be conducted through a newly formed liability company called Avanceon Arabia InfoTech WLL. Khalil wrote that this joint venture is expected to have a positive impact on the group’s business and provide value for its shareholders.
What are ZOMCO and Acavenceon?
Zamil Operations and Maintenance Company (ZOMCO) has been making waves as one of the top providers of operations and maintenance services in the Kingdom of Saudi Arabia (KSA). Founded in 1977 in Al-Khobar, Saudi Arabia, ZOMCO is a fully owned subsidiary of the Zamil Group. Over the years, the company has garnered a reputation for excellence in the operation and maintenance of a wide range of facilities, including in-land and off-shore oil drilling facilities, chemical & petrochemical plants, hospitals, universities, residential camps, airports, air bases, engineering services, and utilities. Additionally, ZOMCO offers comprehensive catering, camp management, and facilities management services to ensure that all of their clients’ needs are met. With such a diverse range of services and a track record of success, it’s no wonder that ZOMCO is a leading name in the industry.
Avanceon Limited is an industrial automation consultation and system integration entity that has become a leading innovator in the automation industry by providing state-of-the-art automation solutions across three continents. The company operates in Pakistan, Qatar, UAE, KSA, and the United States and advocates an ethical, proactive, and sustainable approach to business. Founded in 1984, Avanceon is accomplished in engineering excellence and offers end-to-end solutions, including design, supply, engineering, installation, testing, commissioning, and maintenance. It also holds ISO 9001-2015, 14001-2015, and OHSMS ISO 45001-2018 certifications from TUV Austria and TRACE International.
The joint venture: Avanceon Arabia InfoTech WLL
Avanceon announced that its Saudi Arabian subsidiary Avanceon Saudi for Energy Company and ZOMCO have joined forces to launch Avanceon Arabia InfoTech WLL, which will help the two companies expand their project execution footprint in KSA.
In a written statement to the media, the two companies shared why this new joint venture will be beneficial for both.
Avanceon has left a successful footprint in its wake through its projects in the Middle East, especially in KSA. They bring over a decade of experience, catering to high profile clients and successfully seeing through one of the largest government projects. Having a highly trained staff, exceptional technical skills, cost-effective models, and impressive OEM partnerships, Avanceon aims to take things up a notch, by joining hands with a reputable JV partner in KSA.
On the other hand, ZOMCO is yet another highly reputable company, having decades of execution experience under its belt. Now, they’re teaming up with Avanceon to create a superpowered JV. The experience and excellence of these two companies combined are expected to create a dynamic duo that plans to be a one-stop-shop for services related to the Water, Transportation, and Infrastructure sectors. With investments in top-notch testing and manufacturing facilities, expert human resources, and an exciting pipeline of projects, it seems like the sky’s the limit for this synergistic partnership.
In the same press release, the President of ZOMCO Faisal S. Al Zamil said that, “ZOMCO is proud to be working in partnership with Avanceon to bring market leading system integration and automation solutions to the Saudi market. We see huge opportunities in the sector and have a partner who can help to develop the market and to train and mentor a team of young Saudi professionals to deliver world class solutions.”
Similarly, Sarmad Mahmood Qureshi, the President of Avanceon Limited (Middle East & Africa), and leading as Executive Director & CEO Avanceon Arabia InfoTech, stated that, “The timing is opportune for a joint venture with a well-known Saudi conglomerate, as Avanceon is already a leading regional provider of infrastructure, oil and gas, water, and transportation solutions in the GCC. With Saudi Arabia committing significant investments, this collaboration with Zamil will further enhance Avanceon’s position.”
Qureshi continued, saying that, “The establishment of Avanceon Arabia InfoTech reflects our shared commitment to advancing our technological capabilities. The Saudi Vision provides an ideal platform to replicate, promote, and implement our successful solutions in KSA. With ZOMCO as our partner, we are confident in our ability to develop a robust portfolio of projects, maintenance solutions, and digitisation initiatives, which will be vital in realising the goals of the Saudi Vision 2030.”
It was further shared that the agreed upon terms of the JV entail Avanceon and ZOMCO splitting the initial paid up capital by 60% and 40%, respectively. Moreover, it was disclosed that the JV will be valid for the next 25 years. Avanceon Arabia InfoTech WLL will commence its operations on the effective date and it will continue to operate until the termination date of the contract.
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