SAMA Water signs SAR 38.4M deal to supply equipment for 2 new production lines

SAMA Healthy Water Factory Co. signed a purchase agreement yesterday with Germany-based Krones AG to supply and install equipment for the establishment of two new production lines.

 

The lines will manufacture bottled water in various sizes—small, medium, and large—according to the standards and specifications in place in Saudi Arabia. The total value of the agreement is EUR 9 million, equivalent to approximately SAR 38.43 million.

 

 

 

According to the company’s statement to Tadawul, Krones AG will be responsible for delivering, installing, and commissioning the new production lines in line with the highest standards of quality and safety.

 

The company will also provide a qualified engineering team to train factory staff on operating the lines efficiently and professionally.

 

The contract is valid for one year, with an expected completion and delivery date by the end of April 2026.

 

The company clarified that there are no related parties involved in the agreement, expecting the positive financial impact of the added production capacity to appear in its results during the second half of 2026.

 

As for payment terms, SAMA Water will pay 15% of the contract value—EUR 1.35 million (approximately SAR 5.77 million)—as an advance payment. The remaining 85%—EUR 7.65 million (approximately SAR 32.67 million)—will be financed through an export credit agreement with a top-tier German bank. The financing amount will be paid directly to Krones AG.

 

The agreement aims to expand the company's production capacity by increasing current output and introducing new bottle sizes with high-quality standards, enhancing its competitiveness in the Saudi market and opening new business avenues.

 

This step is part of the company’s strategic plan focused on sustainable growth, supporting Saudi Arabia’s Vision 2030 by improving industrial efficiency and boosting the sector’s contribution to the national economy.