Unimech Aerospace and Manufacturing has established a joint venture with Yusuf Bin Ahmed Kanoo Company in Saudi Arabia. The joint venture, formed on January 20, 2026, will focus on setting up an advanced precision machining and remanufacturing facility. This initiative supports Saudi Vision 2030 and aims to serve the oil & gas and energy sectors, with a projected revenue of USD 80 million over five years.
Joint Venture Formation
Unimech Aerospace and Manufacturing has entered into a strategic joint venture agreement with Yusuf Bin Ahmed Kanoo Company Limited (YBAK) on January 20, 2026. The partnership aims to create a Joint Venture Company (JVC) in Saudi Arabia, focusing on advanced manufacturing capabilities.
Strategic Objectives
The primary goal of the JVC is to establish an advanced precision machining and remanufacturing facility within Saudi Arabia. This facility will primarily cater to the upstream and downstream sectors of the oil & gas industry, as well as other allied energy sectors. The activities of the JVC are designed to align with the In-Kingdom Total Value Add (IKTVA) requirements and support the broader objectives of Saudi Vision 2030.
Joint Venture Details
The joint venture is structured as follows:
- Unimech Shareholding: 51%
- YBAK Shareholding: 49%
The Board of Directors will consist of five members, with Unimech nominating three and YBAK nominating two. The Chairman of the JVC will be selected from among Unimech’s nominees.
Investment and Growth
The total investment into the JVC is projected to reach up to USD 18 million, which will be deployed in tranches through equity investments, loans, or a combination of both. The JVC anticipates achieving cumulative revenues of approximately USD 80 million over five years, starting with about USD 1 million in the first year and scaling up to around USD 30 million by the fifth year.
Statements
According to Anil Kumar Puttan, Chairman & Managing Director, Unimech, this joint venture represents a strategic expansion of Unimech’s Energy vertical, aligning with Saudi Arabia’s focus on localization and industrial capability development.
Mr. Ali Abdulla A Kanoo, Chairman, YBA Kanoo, stated that this venture reflects their commitment to supporting the Kingdom’s industrial development agenda and building sustainable manufacturing capabilities in Saudi Arabia.
Source: BSE
