Zamil Steel Company has received a boost to its financials after its Asian arm was awarded a contract to supply steel buildings for the production of a new Caterpillar factory in Indonesia.
The deal, worth $17.3 million (SR65m), is part of a $150 million factory investment by PT Caterpillar Indonesia, to build a new factory on Batam Island in Indonesia.
Zamil Steel Buildings Vietnam will fabricate and supply pre-engineered steel buildings for the new facility.
Shipments of the pre-engineered buildings will begin in the second quarter of 2012, and end in Q3.
Nawaf Al Zamil, vice-president of Zamil Steel’s Building Products Group said of the deal, signed May 7 in Batam, that the contract will have a visible positive impact on the company’s consolidated financials for 2012.
“We are honored to secure this agreement as the supplier of steel building materials for the Caterpillar Batam facility, despite the strong competition. Our company’s capability to meet the FM Global standards of this project, along with our capacity for fabrication ofmaterials suitable for heavy-duty crane construction, contributed to the selection process,” said Al Zamil.
The plant is part of Caterpillar’s strategy to expand output of mining trucks and bulldozers, as the global market for mining commodities booms, thanks to strong demand from China and India.
The factory will produce a wide range of mining truck chassis and bodies for shipment to mining customers throughout the Asia Pacific region.
It is aiming for the first completed trucks to be shipped from Batam in Q3 2013.
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