Saudi JV to build tyre factory

English language daily Arab News reports that Al-Amoudi Group company, the Al-Muwakaba for Industrial Development & Overseas Commerce (Holding), will establish a 194,000 square factory in the Saudi Arabian port city of Yanbu. The project will cost an estimated SR900 million (£148 million), and the facility is expected to employ 600 workers and have an annual output of 1.8 million passenger car and commercial vehicle tyres.

Mohammed Abdullah Baraqabah Al-Amoudi, Al-Muwakaba director general and board vice-chairman, is quoted as saying the plant will utilise the latest world-class tyre manufacturing technologies, while the products manufactured would meet European ECE, American DOT and Saudi Arabian Standards Organization (SASO) standards. Abdullah Al-Amoudi added that the plant will primarily meet the needs of the Saudi market, plus other GCC markets and North Africa. Commercial production is expected to commence by 2015, he said.

Arab News states that Al-Muwakaba has a 65 per cent stake in the total “Advanced Tire Factory” project, while the Bin Jarallah Group holds a 35 per cent share of the project’s first phase; other international partners are expected to join the project during later phases. Funding is said to come in part from the Saudi Industrial Investment Fund, while a number of local Saudi banks are supporting the project. The contract to design, engineer and supply the facility has been awarded to China CAMC Engineering Co., Ltd. (CAMCE) and its affiliate China National Machinery Industry Corporation (SINOMACH). Plant technology will be provided by BCT and supervised by German consulting firm Technical Tire Consulting GmbH.