Pantech Group Holdings Bhd is venturing abroad to establish a SR15 million (RM13.45 million) carbon steel fittings plant in Dammam, Saudi Arabia, reported the Bernama news agency. Executive Director Adrian Tan said the first phase of the plant is expected to be ready before the financial year ending February 28, 2011. Pantech, a pipes, fittings and flow control manufacturer for the oil and gas industry, expects revenue of SR50 million (RM44.85 million) to be generated in the first year of the plant's operations in the oil-rich Gulf region. Tan said this after the signing of a memorandum of understanding (MoU) and agency agreement between Pantech International (KSA) Sdn Bhd and Saudi-based Abdul Rahman Al-Otaishan Trading Group (Al-Otaishan Group) here Monday. The signing ceremony was witnessed by Deputy Finance Minister I, Datuk Wira Chor Chee Heung. The agreements will facilitate the establishment of a joint investment company, in which Pantech Group will own 49 per cent equity while Al-Otaishan Group will hold the remaining 51 percent. Al-Otaishan will be the sole distributor and agent for Pantech's products in Saudi Arabia and non-exclusive distributor and agent in the other Gulf Cooperation Council (GCC) countries.
