Al Arrab acquires Romanian firm for $174 million

JEDDAH — A Saudi company — Al Arrab Contracting Co. Ltd. — has bought a Romanian company for $174 million. Al Arrab has acquired controlling stake in Romanian Electroputere company, which manufactures train engines, generators and electrical transformers.

By Habib Shaikh

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Published: Tue 11 Dec 2007, 9:25 AM

Last updated: Sat 4 Apr 2015, 9:35 PM

Al Arrab intends to export engines produced in Craiova, 200 kms west of Bucharest, to countries in the Middle East.

The Romanian government has already signed the deal to sell 63 per cent of Electroputere Craiova to Al Arrab, in which the Saudi firm intends to invest $1 billion to gradually upgrade the existing facilities.

This is one of the major investments made by Saudi Arabia, which has so far invested $2.2 billion in that country, Romanian Ambassador Dr Ion Dobreci said at a Press conference in Riyadh recently. The Press conference was also attended by George Gabriel Alexe, first secretary and Bogdan Soglu, counsellor for economic affairs.

Dobreci added that the move to buy this Romanian company was significant keeping in view the fact that Saudi Arabia intends to develop its railway infrastructure in which Electoputere engines can be used.

The priorities for Al-Arrab will be to invest in new technology for the production of train engines and to make Electroputere Craiova profitable by the end of 2009. At the moment, the Romanian company carries debts of more than $64 million and hence the only solution to continue production and modernise the facility was the involvement of a strong investor like Al-Arrab.

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