Saudi Arabia’s Molan Steel Co. has signed an agreement with Yara International Limited to reduce its outstanding settlement payment by SAR 1.05 mln (USD 280,000) in exchange for accelerated payment, according to the company’s stock exchange filing.
Under the agreement, the remaining settlement balance has been reduced from SAR 7.88 mln (USD 2.10 mln) to SAR 6.83 mln (USD 1.82 mln), which Molan must pay within 10 business days of signing to secure the reduction.
To finance the accelerated payment, Molan has obtained an interest-free loan of SAR 4.6 mln (USD 1.23 mln) from its major shareholder, Dar Al-Takamul Holding Co. The loan carries no interest, administrative fees or other benefits and must be repaid within five months of receipt through monthly transfers of company proceeds and revenues. No guarantees were provided.
The dispute stemmed from Molan’s acquisition of Mayar International for Industry from Yara in December 2024 for SAR 34.88 mln (USD 9.30 mln). Mayar manufactures refrigerators, freezers, water coolers and electric fans. Yara subsequently sought SAR 17.88 mln (USD 4.77 mln) in unpaid dues and SAR 2 mln (USD 533,000) in damages, while Molan challenged the acquisition, alleging misrepresented financial statements. A Riyadh court ordered Molan to pay the outstanding amount in September 2025 but dismissed Yara’s damages claim. The parties reached a settlement in March 2026.
Molan Steel is a key supplier of steel products for the construction and fabrication sectors across the Middle East.
1 USD / 3.75 SAR