Prominent Indian businessman B R Shetty has signed an agreement with Prince Turki bin Mohamed bin Nasser, in charge of Jazan Industrial City and Shaikh Mohammed Rafik, Chairman of Gammon Group to establish a pharmaceutical plant in the new industrial city in the Kingdom’s south.
Under the agreement, which was signed on Monday, Shetty’s NeoPharma will set up the plant in the SR75 billion Jazan Industrial City, which is being developed by Gammon Group. Shetty is the managing director and CEO of NeoPharma, which is based in Abu Dhabi. Shetty will have 65 percent stake in the project while Prince Turki will hold 25 percent and Gammon 10 percent, Rafik told Arab News after signing the landmark agreement. He said NeoPharma would receive an interest-free loan worth 75 percent of the project cost for a period 20 years.
Prince Turki, who is authorized by Jazan Gov. Prince Mohamed bin Nasser to develop Jazan Industrial and Economic City, will help Neo Pharma to procure license from the concerned authority and assist to establish their plant in Jazan.
As per the agreement, Prince Turki will assist NeoPharma in procuring license and other legal compliance from the government of Saudi Arabia for the running of a pharmaceutical manufacturing and processing plant.
“The prince will also help the company to get land in Jazan Industrial City free of cost for setting up the factory as well as to receive a soft loan equal to the amount of 75 percent of the project cost for a period of 20 years,” Rafik said.
Gammon will be responsible for providing assistance to Neo Pharma in doing all documentations and compliances which is needed for the establishment of pharmaceutical plant in Jazan.
The Middle East-based Gammon, which is engaged in diversified projects having global presence, have been legally appointed by Prince Turki as authorized representative to initiate meaningful discussion with credible companies, groups or Individuals around the globe to establish their branches or new industrial, commercial or residential business ventures in Jazan.
Neopharma is committed to manufacture safe, efficacious and cost effective health care products of consistent quality conforming to international standards. Rafik thanked Shetty for expressing his interest to establish a pharmaceutical manufacturing plant in Jazan.
“Gammon is convinced about the capability of NeoPharma,” he added.
Jazan Industrial City is being established in the southwestern part of Saudi Arabia with a focus on the energy and manufacturing industries.
It is expected to attract industrial, commercial and residential investments valued at SR75 billion and create 100,000 direct and indirect jobs.
It promotes investments in infrastructure facilities like roads, bridges, commercial centers, power plants, water treatment plants, oil refineries and petrochemical plants, setting up of construction companies for infrastructure projects, steel mill factory, state of the art generic pharmaceutical plant, and sugar mill, food processing companies and other vital projects.