Unimech Forms JV in Saudi Arabia for Advanced Manufacturing Facility
Unimech Aerospace and Manufacturing Limited has formed a Joint Venture with Yusuf Bin Ahmed Kanoo Company Limited (YBAK) in Saudi Arabia. The JV will establish an advanced precision machining and remanufacturing facility, with Unimech holding 51% and YBAK 49%. The venture aims for cumulative revenues of USD 80 million over five years, supported by an investment of up to USD 18 million.
The JV is a strategic expansion into the energy sector in Saudi Arabia, with significant revenue projections and investment, indicating a medium-term impact on the company's growth and market presence.
The formation of a joint venture represents a strategic expansion and entry into a new market, which is generally viewed positively for growth prospects.
Unimech Aerospace and Manufacturing Limited ("UNIMECH") has executed a Joint Venture Agreement on January 20th, 2026, with Yusuf Bin Ahmed Kanoo Company Limited, Kingdom of Saudi Arabia ("YBAK"). This agreement establishes a Joint Venture Company in Saudi Arabia, which will operate under the name “YBAK Unimech Advanced Manufacturing Solutions LLC”.
The proposed Joint Venture Company (JVC) will establish an advanced precision machining and remanufacturing facility in the Kingdom of Saudi Arabia, focusing on upstream and downstream oil & gas applications and allied energy sectors. The JVC's activities will align with IKTVA (In-Kingdom Total Value Add) requirements and support Saudi Vision 2030 objectives.
Unimech will hold a controlling 51% stake in the JVC, with YBAK holding 49%. The total investment into the JVC is planned to be up to USD 18 Million (approximately ₹150 crore) in tranches, through equity investment, loans, or a combination thereof. The JVC is projected to deliver cumulative revenues of approximately USD 80 million (approximately ₹664 crore) over five years, starting with USD 1 million (approximately ₹8.3 crore) in Year 1 and accelerating to USD 30 million (approximately ₹248 crore) by Year 5. This growth is expected to be supported by a phased joint investment of USD 30 million (approximately ₹248 crore).
The facility will focus on advanced precision machining, API-compliant manufacturing and remanufacturing, faster turnaround times, and high-quality execution. The partnership combines Unimech’s engineering and manufacturing expertise with YBAK’s regional presence and market understanding. The Board of Directors for the JVC will comprise five members: three nominated by Unimech and two by YBAK, with the Chairman being nominated by Unimech.
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Unimech Aerospace and Manufacturing Limited filed this with the NSE as a statutory disclosure, categorised under joint ventures. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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