Saudi-based National Metal Manufacturing and Casting Co. (Maadaniyah) and IGL Group Ltd. have agreed to cancel their planned aluminium foundry project, which was to be developed through Vair National Metal Casting Co. The decision was reached on November 11 due to a lack of progress in implementing the project, Maadaniyah said in a statement to Tadawul.
The company added that neither party has any outstanding obligations following the cancellation. The project’s licences and commercial registration will also be cancelled in line with applicable regulations. Maadaniyah will incur cancellation costs of SAR1.2 million (USD 318,000), recorded as an impairment of non-financial assets.
Maadaniyah and IGL first agreed to set up the aluminium foundry in February 2021 as part of Maadaniyah’s expansion plans. They renewed the agreement several times before eventually deciding not to go ahead with the project.