MVM OVIT signed a contract for founding a company in Saudi Arabia


Budapest, 14 March 2017 –MVM OVIT Zrt. and the Saudi Arabian International Company (AIC) signed a contract on 13 March in Budapest for founding a joint venture. The new joint venture will have its registered seat in Jeddah, Saudi Arabia, and the main areas of its operation will include the construction of high-voltage transmission lines and substations, construction, retrofit, operation and maintenance of conventional power plants, as well as participation in renewable energy projects.

 

In line with the strategy of the MVM Group, MVM OVIT Zrt. wishes to strengthen its presence and sell its existing knowledge and skills on the export markets. To this end, after substantial preparatory work, OVIT and its Saudi partner Arabian International Company signed a contract for the foundation of a joint venture on 13 March. The company set up by the two founders will be registered in Saudi Arabia, with a registered seat in Jeddah, and following that it may start its activities on the energy market of the Kingdom. The main areas of its operation will be the construction of high-voltage transmission lines and substations, construction, retrofit, operation and maintenance of conventional power plants, as well as participation in renewable energy projects. In addition to that, it will take part in the related investments and in renewing energy projects.

The foundation of the company took place now as due to the demographic and economic growth the energy consumption of Saudi Arabia increases by 4–5% per year, thus the Kingdom has to make energy investments in the value of SAR 500 billion (USD 133.3 billion) in the next ten years in order to satisfy the energy requirements. The foundation of the company will facilitate for the parties to submit bids to local tenders and in case of successful participation to implement the projects as general contractor.

The new joint venture will also play an important role in the cooperation between the MVM Group and Saudi Electricity Company (SEC), the national electricity company of Saudi Arabia, which mainly aims at the transfer of the professional culture and skills of the Hungarian partner, upon the request of the Saudi Arabian partner.

dr. Zsuga János, Wasim A. Attieh and dr. Korom Norbert Lajos

From the part of MVM OVIT Zrt., the contract related to the foundation of the joint venture was signed by dr. Zsuga János, chairman of the Board of Directors and dr. Korom Norbert Lajos, the company’s CEO, while from the part of Arabian International Company its owner and president, Wasim A. Attieh.