Shmoh Almadi Signs SAR 10.9M Contract for Qassim Plant Finishings

Shmoh Almadi Co. signed a SAR 10.85 million contract (excluding VAT) on Monday with Osus Modern Buildings Co. to complete finishing works at its plant in Qassim's Second Industrial City. The 12-month agreement covers the final fit-out phase of the facility.

Osus Modern Buildings is already handling the structural concrete and construction work at the same site, the company said in a statement to Tadawul. The contract extends an existing relationship rather than bringing in a new contractor mid-build.

The signing is part of a staged expansion plan. Shmoh Almadi is building out production capacity to meet what it describes as growing demand for its products. The company framed the project as a direct extension of its strategy to increase current production volumes.

Management expects the financial impact to show up once the factory begins operations. No timeline for that start was given in the statement. The company also confirmed no related parties were involved in the deal.

The contract value represents roughly 3.5% of Shmoh Almadi's SAR 310 million market capitalization as of Monday's close. The stock was flat on the session.

For context on how Saudi industrial companies fund capacity expansions, see AlphaScala's stock market analysis.