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Amiantit Sets-Up Factories in Morocco and Algeria

  • Thursday, 6th April 2006
  • Reading time: about 4 minutes

Dammam-based Saudi Arabian Amiantit Company is participating on an equal share basis in two joint venture partnerships to establish GRP pipe production plants in Morocco and Algeria.

The Moroccan manufacturing facility will be built in Casablanca at a cost of USD 23 million as a joint venture under the name of Amitech Maroc, a limited liability company in 50% – 50% partnership between Amiantit International Holding and Nareva Holding which is a 100 percent subsidiary of the ONA Moroccan Group. The new factory’s first order is for 90 kilometres of GRP (glass reinforced polyester) large diameter pipes to transfer 45 million cubic metres of water per year from the Mohamed Mokhtar Soussi and Aloulouz dams to irrigate the Guerdane area near to Agadir, and 76 kilometres of GRP pipes for a distribution network covering an area of 10,000 hectares.

The order is for a BOT (build, operate and transfer) project with a total contract value of USD 77, 245,772 awarded to Amensous SA, in which Inframan, a 100% subsidiary of Amiantit, has 15% participation in the capital. Over the next five years Amiantit will be involved in further water and sewerage projects in Morocco

The factory to be built in Algeria will be located at Mostghanerm city and is a joint venture under the name of Amitech Algeria in 50% – 50% partnership between Amiantit International Holding and the Lakehal-Ayat family. It will cost around USD 21 million which is approximately the same amount as the value of the first order for 26 kilometres of GRP pipe to transfer water between Douera and El Harrach.

“”Populations are increasing everywhere, resulting in ongoing expansion of public service infrastructures, and these two new manufacturing facilities are yet another step forward in our policy of strategic global expansion by meeting worldwide demand for Amiantit products through fulfilling local orders with local manufacture,”” said Eng. Fareed Al-Khalawi, Amiantit President & CEO. “”At the same time, there is an increasing demand for pipe systems needed by the booming gas, oil and petrochemical industries and Amiantit is producing pipes in materials that have been specifically developed for the requirements of this sector.””

Amiantit has also won five recent contract awards to supply pipe systems for major projects in GCC countries with a total value of SAR 76 million. The biggest amount is for two contracts in Qatar, the Qatar Primary Road – Dukhan project worth US$ 7.5 million and the New Doha International Airport project worth US$ 3.7 million, making a total of US$ 11.2 million. The order from Abu Dhabi is for water supply for the Ghayathi and Hamra Military project with a value of US$ 4.26 million. The remaining orders are from Oman; the Shinas Wilayat water supply project worth US$ 2.6 million and the Saham water supply project worth US$ 2.1 million.

The news follows Amiantit’s recently published forecast that sales in 2006 will surpass US# 800 million, including substantial projects that are currently under negotiation in the Kingdom and other countries around the globe.

“”Over a period of more than three decades Amiantit has made an important contribution to the municipal and industrial infrastructures of Saudi Arabia and our neighbours in the Gulf,”” said Eng. Fareed Al-Khalawi, President & CEO of Amiantit. “”Now that we have grown into a leading global industrial group with activities in countries all around the world, we are delighted that we continue to play a leading role in local and regional development projects that are designed to improve the daily lives of GCC citizens.””

Amiantit already has Amitech manufacturing facilities in Saudi Arabia, Argentina, Brazil, Germany, Poland, South Africa, Spain, USA, and Kazakhstan, plus AFIPL which is a GRP manufacturing joint venture in Goa, India. These, together with the new factories in Morocco and Algeria, will make a total of 12 countries where Amiantit GRP pipes are produced. Amiantit makes pipes in other materials, such as glass reinforced epoxy (GRE), concrete, polyethylene and ductile iron, and the total number of manufacturing facilities wholly owned or majority owned by Amiantit is 35 factories in 18 countries around the world.

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