Reference to announcement of Red Sea Housing Services Company that was posted on 08-09-2013 corresponding to 02-11-1434 for the construction of a factory inside King Abdullah Economic City in Rabigh, which specializes in the production of prefabricated housing units, the Company announces that it has commenced the execution of the project according to the scheduled plan to prepare for the installation of the infrastructures and start the construction of the factory. The initial earthwork including grading, cutting and backfilling for the 193,000 square meters property have all been finalized, in addition to completing the required Environmental Impact Assessment study. Accordingly, it is estimated that 20% of the project has been accomplished.
However, the Company expects to complete the project and commence production in Q3 2015 instead of the previously announced date of Q2 2014. This is mainly attributed to certain changes in the design and specifications of the factory to comply with the requirements of the Economic Cities Authority. Total expenses associated with executing the first phase of the project amounted to SAR 4.36 million.
The Company confirms that the changes in the scheduled plan will not have an impact on its future financial statements. Any relevant material developments will be announced in due course.