Unimech Aerospace and Manufacturing Limited has executed a joint venture agreement with Yusuf Bin Ahmed Kanoo Company Limited to establish an advanced precision machining and remanufacturing facility in Saudi Arabia, expanding its manufacturing footprint in the Middle East. The agreement was signed on 20 January 2026 and provides for the formation of a joint venture company in the Kingdom to serve oil and gas and allied energy sectors.
The joint venture will undertake manufacturing and remanufacturing services within Saudi Arabia and proposes a phased expansion into allied energy segments. The activities are intended to leverage core machining and manufacturing capabilities while supporting localisation and industrial development objectives in the Kingdom, the company said.
The joint venture will cater to upstream and downstream oil and gas applications and will align its operations with the In-Kingdom Total Value Add (IKTVA) framework and the objectives of Saudi Vision 2030.
Under the terms of the agreement, the joint venture will be held 51 percent by Unimech Aerospace and Manufacturing Limited and 49 percent by Yusuf Bin Ahmed Kanoo Company Limited. The board of the joint venture will comprise five directors, with three nominated by Unimech and two by Yusuf Bin Ahmed Kanoo. The chairman will be appointed from among the directors nominated by Unimech, according to the filing.
Unimech disclosed that the total investment in the joint venture will be up to USD 18 million, to be deployed in tranches. The investment may be made through equity contributions, loans, or a combination of both. In the event of any further issuance of shares by the joint venture company, both partners will have the right, but not the obligation, to subscribe on a pro rata basis to maintain their respective shareholding levels.
Yusuf Bin Ahmed Kanoo Company Limited is part of the Yusuf Bin Ahmed Kanoo Group of companies, which was founded in the Kingdom of Bahrain in 1890. The group operates across sectors including shipping and logistics, travel and leisure, industrial and energy solutions, machinery, chemicals, oil and gas services, power and water, and real estate, with a regional presence across Saudi Arabia, Bahrain, the United Arab Emirates, Oman, and Qatar.
Unimech Aerospace and Manufacturing Limited is an engineering and manufacturing company with operations spanning aerospace, energy, oil and gas, semiconductors, and other industrial sectors, specialising in precision engineering and complex manufacturing solutions.
