Allied Engineering Enterprises Saudi Arabia has been awarded a construction contract for the Phase II of an industrial complex project in the Kingdom worth SAR 77 million.

The contractor’s win was announced by Halwani Brothers, the food processing and packaging company developing the facility. Allied Engineering will provide all civil and steel structural work for a new production zone that will eventually produce dairy, meat, juice and tinned food at a total Phase II cost of SAR 258 million.

Halwani Brothers based in Jeddah said that the signing of the contract will take place in August. The company also revealed that the bidding process for electromechanical works that cover water desalination, industrial drainage, boilers and refrigerators will start within the Q4 as the final design is under preparation.

Halwani Brothers has also spent SAR 33 million on direct purchase of materials it said in an updated statement on the stock exchange. The company has been battling to retain production levels and sales since it tem temporarily shut down manufacturing operations due to damages from the floods that tore through Saudi’s second biggest city in January.

Mr Saleh Hefni CEO of Allied Engineering said that “We did not incur any damage to our warehouses but our factory did get flooded which has affected our manufacturing operations resulting in the company being forced to shut down all equipment for at least 45 days. However, H1 net profit rose 5% to SAR 45 million.”

(Sourced from www.constructionweekonline.com)