MHProNews has learned from thenational.ae that Saudi Arabia’s Red Sea Housing Services Co., which provides temporary and permanent modular housing to companies involved in the mining, oil and gas industries working in remote locations, has acquired Malaysia’s AM Modular for $7 million.

Red Sea, which will pay $3 million in cash and make annual payments for the remainder, will expand into the South East Asian market and obtain valuable technology to build concrete structures up to 12 floors high quickly and with less manpower than previously used.

Begun in 2007, AM Modular has three facilities in Malaysia and also has a factory in Adelaide, Australia.

Last month, Red Sea announced it had won a contract with the Qatari real estate company Daruna to build accommodations for 4,000 people.

In 2015 Red Sea posted a 56 percent decline in net profit due to the decline in oil prices, which resulted in some projects being terminated and others suspended. ##

(Photo credit: Red Sea Housing–modular workforce housing)

Article submitted by Matthew J. Silver to Daily Business News-MHProNews.