Saudi joint stock company Swicorp Joussour has announced it has acquired a strategic stake in RAK Ghani Glass LLC (RAK Ghani) which is set for commissioning this month (October) with commercial production likely to begin this December.
Swicorp Joussour is among four joint venture partners in RAK Ghani, the others being RAK Investment Authority, JS Group and Ghani Glass Ltd.
Financial details of the transaction were not disclosed.
Swicorp Joussour is capitalised at SR2.67 billion ($712 million) and managed by Swicorp.
The RAK Ghani plant, described as state of the art, will have an initial capacity of 45,000 tonnes, which is equivalent to 600 million lightweight pharma-grade bottles. The company plans to supply the product in the Middle East, Europe and Asia. The production facilities are located on a 100,000 sq m area plot in Ras Al Khaimah’s industrial zone in the north of the UAE. The company plans to expand the plant’s capacity in the future and is also considering developing other glass-related products.
Shahid Khan, investment director, Swicorp Private Equity, said: “The global pharmaceutical packaging industry is worth around $30 billion and demand is expected to continue rising, especially in developing markets. We believe RAK Ghani is ideally positioned to capture this demand growth for lightweight, high-quality pharmaceutical bottles across the GCC, Asia and European markets.”
In his comments on the investment, Faysal Hamza, executive director, Swicorp Private Equity, noted: ‘This is Joussour’s second investment in the glass sector and we continue to believe in the sector. In particular, we believe that high-quality pharma bottling has strong potential in the Mena region. Moreover, we would like to express our gratitude for the trust and confidence the RAK Investment Authority and other stakeholders in the plant have placed in Swicorp Joussour Company.”
Imtiaz Ahmed Khan, CEO of RAK Ghani, welcomed the entry of Swicorp Joussour Company, saying it would add significant value to the project. He spoke of the efforts his company was making to ensure production would begin by the end of this year.
Swicorp, a financial advisory, private equity and principal investment firm licensed by the Capital Markets Authority, has an extensive track record of pioneering transactions across the Mena region over the last 20 years. With the relocation of Swicorp’s group headquarters to Riyadh, and its extensive network of offices in Tunis, Dubai and Algiers, a wealth of in-depth local knowledge and expertise is provided. Its Geneva presence (offering financial advisory services) and proximity to major European financial centres provides access to international corporations and leading edge expertise. The company was founded in Switzerland in 1987.
Joint venture partner Ghani Glass is one of the leading glass manufacturers in Pakistan. The company, established in 1992 and listed on the Karachi and Lahore stock exchanges, specialises in the manufacturing of container, pharmaceutical and float glass.
It operates three plants located in three different provinces of Pakistan and also owns a strategic stake in RAK Ghani.