PIF Completes Full Acquisition of GEMS
Saudi Investment Recycling Company (SIRC), a subsidiary of Saudi Public Investment Fund (PIF), announced its complete and final acquisition of Global Environmental Management Services (GEMS), which would increase the company’s investment in the industrial and hazardous waste recycling sector.
Through GEMS, SIRC aims to meet the national recycling target of 85 percent for industrial and hazardous waste in Saudi Arabia and landfilling the remaining 15 percent by 2035.
GEMS is wholly owned by Jadwa Waste Management Opportunities Fund.
Established in 2017, SIRC aims to develop, own, operate and invest in the recyclable materials processing sector in the Kingdom. The company looks to contribute more than $9.8 billion of GDP and attract $1.6 billion of foreign investment into Saudi Arabia, creating about 23,000 new jobs by 2030.
The complete acquisition between SIRC and Jadwa was celebrated at an event attended by Saudi Minister of Environment, Water and Agriculture Abdulrahman bin Abdulmohsen al-Fadley and Chairman of Jadwa Adib Alzamil in the presence of a number of officials.
The completion of the regulatory procedures and the acquisition deal is a significant development in the SIRC's recycling mission, which aims to support solutions on resources through recycling and reduce transfer of waste to landfills in line with Vision 2030.
According to preliminary studies conducted by the PIF, the Kingdom recycles only about 10 percent of recyclable materials, with an annual production volume of about 50 million, with 90 percent diverted to landfills. This causes significant damage to the environment and prevents the use of recyclable materials.
Speaking on the occasion, CEO of SIRC Jeroen Vincent said that the full acquisition will allow SIRC to become the biggest player in the GCC's industrial and hazardous waste management sector.
It will also provide a platform to further develop capacity and state-of-the-art technologies to treat hazardous waste in an environment-friendly way.
Vincent emphasized that the acquisition represents a major development for SIRC and will establish a strong presence in the industrial waste sector while maintaining and expanding GEMS operations.
In a statement issued on Monday, SIRC announced it intends to fully integrate industrial and medical waste treatment into its value chain operations, particularly in the mining, minerals, manufacturing and industrial sectors, in order to reuse and recover resources.
Vincent indicated that the company wants to expand its current capacity to cater for 88 percent of recycling and operations of GEMS facilities and unlock the potential for a new market for raw materials recycled from mining and medical waste.
Currently, GEMS operates four facilities in Yanbu, Rabigh, al-Jouf and Dammam. The fifth plant is expected to begin operations this year in Jubail, and preparations for the sixth facility in Jazan have started.