KUALA LUMPUR (Oct 17): Eversendai Resources Bhd’s wholly owned subsidiary, Eversendai Resources Sdn Bhd (ERSB) has entered into partnership with Saudi Arabia-based Algihaz to form a joint venture (JV) company to execute structural steel projects in Saudi Arabia.

The JV follows the memorandum of understanding entered into by Eversendai and Algihaz on Oct 13. According to Eversendai’s filing with Bursa Malaysia on Tuesday, the JV company shall be named as Eversendai Algihaz Structures LLC.

“The execution of the memorandum of understanding (MOU) is not expected to have any material effect on the earnings, net assets, gearing, share capital and substantial shareholders’ shareholdings of ERSB for the financial year ending Dec 31, 2023 (FY2023),” it said.

Last week, the group announced that it is bidding for RM15 billion worth of structural steel projects in Saudi Arabia.

Eversendai has an annual structural steel fabrication capacity of about 200,000 tonnes in Malaysia, Singapore, India, United Arab Emirates and Qatar. Notably, the company is in the midst of building a 60,000-tonne annual fabrication plant in Saudi Arabia.

It also has 27 years' presence in the Gulf and 24 years in the Kingdom of Saudi Arabia executing highly complex structures with connection design, engineering, fabrication and installation of high-profile projects using innovative erection methodology to complete projects adhering to safety, quality and timely completion.

Shares in Eversendai closed half a sen or 2.78% lower to 17.5 sen, giving it a market capitaliszation of RM137 million.