HBL Power Systems is in the process of setting up of a Joint Venture Company (JVC) in the Kingdom of Saudi Arabia (KSA) with Advance Electronics Company, a Government Offset Partner Company and Abdullah H Al Shuwayer & Sons T&C Co as local JV partners.
HBL Power Systems will have a 40% stake in the JVC and will be named as Gulf Batteries Company. It will setup a unit to manufacture industrial Batteries – -NiCad, VRLA & LMLA in the eastern province of KSA at an estimated project cost of about $ 28 million, which will be completed in 3 phases by 2011-12
The advantage of setting up of JV Company in Saudi Arabia is to cater the host country requirements of industrial batteries. As a local manufacturer, the JV company will be given preference to meet their domestic requirements and also in GCC countries