Saudi Ceramics Company enters into SAR 16.07M contract with Sadr Logistics Services Company for Wooden Pallets supply

Saudi Ceramics Company has signed a SAR 16.07 million contract with Sadr Logistics Services Company for the supply of wooden pallets. This order supports the supply and installation of storage systems at its central warehouse in Riyadh.

Saudi Ceramics Company has officially entered into a contract under a purchase order issued to Sadr Logistics Services Company for the supply of wooden pallets in Riyadh, Saudi Arabia. The purchase order carries a value of SAR 3.07 million, contributing to the main project works contracted with Sadr Logistics Services Company valued at SAR 12.99 million. This brings the aggregate value of the contracted works to SAR 16.07 million, excluding Value Added Tax. The initiative directly supports the ongoing project for the supply and installation of advanced storage systems at the company's central warehouse facility in Riyadh, with execution expected over a four-month period.

This strategic agreement aims to optimize logistics infrastructure by enhancing operational efficiency and expanding internal storage capacity to meet growing distribution demands. Saudi Ceramics Company is a prominent Saudi Arabian manufacturer specializing in high-quality ceramic tiles, sanitary ware, and electric water heaters. Sadr Logistics Services Company is a regional provider of supply chain solutions, logistics management, and industrial storage services. Notably, the transaction involves a related party interest, as Eng. Majed bin Abdullah Al-Essa serves as a non-executive board member of Saudi Ceramics Company while acting as the chief executive officer of Sadr Logistics Services Company.

The agreement underscores a broader corporate trend across the industrial and manufacturing sectors in Saudi Arabia toward modernizing supply chain logistics and expanding warehousing capabilities. By reinforcing warehouse operations, manufacturing enterprises can better withstand supply chain volatility, streamline inventory management, and align with national industrial localization and development goals. The transaction is conducted under ordinary business conditions and standard commercial terms without preferential benefits, with final approval to be submitted to the General Assembly in line with regulatory requirements.

From an investor and corporate management perspective, the investment is set to yield immediate financial and operational implications. The financial impact of the transaction is scheduled to be recognized during the third and fourth quarters of the 2026 financial year. For businesses and market observers, the commitment highlights how capital investment in logistics infrastructure can directly support long-term capacity management, asset utilization, and warehouse productivity.