Saudi's ProMedEx Teams Up With Beijing Synapsor For $9.3M Medical Manufacturing JV

Saudi-listed Professional Medical Expertise Company (ProMedEx) has partnered with Beijing Synapsor Artificial Intelligence Technology Co. to establish a $9.3 million (SAR 35 million) medical manufacturing joint venture (JV) in Saudi Arabia, a bourse filing showed on Tuesday.Manufacturing facilityThe new JV, PMX Syai Arabia Company, will establish a manufacturing facility in the kingdom for single-use medical products and consumables, as per the filing on the Saudi Exchange.ProMedEx will hold an 80% stake in the venture, while Beijing Synapsor will own the remaining 20%. The company has been established with a registered capital of $266,000 (SAR 1 million).The $9.3 million (SAR 35 million) project will be implemented in phases, according to the filing. ProMedEx said it will finance its share of the investment using its existing resources.The company said operations will officially commence once PMX Syai Arabia secures the required regulatory approvals and licenses from local authorities. According to the statement, the JV is finalizing implementation agreements with key stakeholders to move the project forward.What to watch forConstruction is scheduled to begin in August and be completed by May 2027. Trial production is expected to start in June 2027, followed by commercial production in August 2027, the company noted.Localizing medical suppliesThe agreement builds on ProMedEx's strategy to localize medical supply manufacturing in Saudi Arabia. On June 15, the company signed a non-binding memorandum of understanding (MoU) with China's Zhende Medical Company Limited and MedSurg FZ-LLC to explore establishing a factory to manufacture and supply medical products across the kingdom and the wider GCC. Share price ProMedEx shares gained 1.6% Tuesday to close at $22.80 (SAR 85.85) following the announcement.