Takween to Take Full Ownership of SAAF Nonwovens After Signing MoU with Chinese Partner
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Takween Advanced Industries is moving to fully consolidate ownership of Advanced Fabrics Factory Company (SAAF), a key producer of nonwoven materials in the region, following a strategic agreement with its Chinese partner, JOFO Nonwoven Company Limited.
MoU Signed to Buy Remaining 70% Stake
Takween has signed a Memorandum of Understanding (MoU) with JOFO to acquire the entire 70 percent stake in SAAF previously held by the Chinese firm. Under the agreement, Takween, which currently owns 30 percent of SAAF, will work toward purchasing the remaining equity, bringing its ownership to 100 percent upon completion of the transaction.
The MoU establishes a framework for due diligence, regulatory approvals and negotiation of final definitive agreements necessary to complete the acquisition. The board of Takween authorizes company leadership to finalize regulatory steps and formalize the transaction.
Strategic Implications for Takween
SAAF is a significant asset in Takween’s portfolio, producing nonwoven fabrics and related advanced materials used in sectors like hygiene products, medical supplies and industrial applications. Full ownership will allow Takween to better integrate operations, streamline strategy and leverage synergies in manufacturing and market expansion.
The acquisition signals Takween’s intent to deepen its footprint in the nonwovens industry and control production assets more tightly as global demand for nonwoven materials grows — especially in technical and hygienic applications.
Background on SAAF and Previous Ownership Changes
Takween had initially reduced its stake in SAAF by selling a 70 percent share to JOFO Nonwoven Company Limited several years ago as part of a strategic partnership. That sale allowed SAAF to tap into JOFO’s manufacturing network and expertise.
Now, Takween’s decision to repurchase that stake reflects a renewed focus on in-house control and growth potential within its core markets.
Next Steps Before Completion
While the MoU marks a major milestone, the deal is not yet final. Both parties must complete:
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Detailed due diligence reviews
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Regulatory approvals in Saudi Arabia and potentially abroad
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Final purchase agreement negotiations
Takween retains the right to extend the MoU beyond its initial term if required to finalize the acquisition.
Outlook and Industry Significance
If completed, Takween’s full acquisition of SAAF positions the company to capitalize on rising demand for nonwoven technology across hygiene, healthcare, and industrial applications. Analysts view this move as aligning with industry consolidation trends and the strategic pursuit of manufacturing autonomy in high-growth material segments.
03:21 PM, Dec 22
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