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Neom terminated the Malaysian company's steel contract due to developments in the Middle East

The contract of Eversendai Corp Bhd, a Malaysia based company responsible for the structural steelwork on the Trojena Ski Village project part of Saudi Arabia’s Neom megacity initiative has been terminated.

Neom terminated the Malaysian company's steel contract due to developments in the Middle East

According to an official statement submitted by Eversendai to Bursa Malaysia (the Malaysian Stock Exchange), the “current geopolitical situation in the Middle East” (risk of war and conflicts in the region) was cited as the reason for canceling the contract for the massive project planned to host the 2029 Asian Winter Games.

The company announced that the termination notice would take effect as of March 26, 2026. The statement emphasized that all obligations undertaken to date have been fully fulfilled; it also noted that the compensation process regarding progress made, commercial claims, and demobilization costs has been initiated.

This decision, viewed as a result of escalating tensions and security risks in the region, was described as one of the most concrete steps in the strategic restructuring process of the Neom projects. It had previously been reported that various delays had occurred in similar projects in the region due to logistical disruptions and financial risks. 

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