New truck assembly plant for Zahid
Volvo and Renault plant to be built at KAEC
Zahid Tractor includes Volvo Trucks and Renault among its brands
Zahid Tractor and Heavy Machinery has purchased land at King Abdullah Economic City (KAEC) north of Jeddah in order to build a new vehicle assembly plant for Volvo and Renault Trucks.
The 225,000m2 site will house a factory capable of building 4000 trucks a year, with a factory area of 60,000m2, and likely to create 400 new jobs.
KAEC, a major development the size of Washington DC, and serviced by a sea port and a land bridge, is a mix of light industry and residential, has seen many companies purchase land for factories, in part attracted by the logistics advantages.
Amr Khashoggi, VP of corporate affairs at Zahid Group, said that the investment in the industrial valley is one of the Zahid Group’s most important expansion stages, “and will provide a quantum leap for Saudi Arabia’s non-oil economy”.
“The factory will produce Volvo trucks which are world famous for strength, durability and safety, and which are sold and serviced in more than 130 countries, making Volvo Truck Corporation the third largest heavy-duty truck manufacturer in the world in terms of large production capacity compared to its counterparts,” he added.
“In the upcoming period we will be working on finishing the factory designs in order to start construction during the first quarter of 2014,” Khashoggi concluded.
Fahd Al-Rasheed, managing director and CEO of KAEC, praised the announcement, calling it a major milestone in the growth of KAEC.
“The choice reflects the numerous advantages that KAEC offers to local and global companies which create a unique atmosphere for investments. These advantages include world class infrastructure, clear and business-encouraging regulations and hassle-free processes, ease of issuing permits and licenses and the possibility of providing qualified manpower through training centers for Saudi talents.
“The availability of housing solutions within the vicinity of the Industrial Valley, and the direct link with King Abdullah Port makes the IV a global logistical hub and an access point to reach about 250 million consumers in the Mena region, not to mention the availability of Haramain Railway station in KAEC and the future land bridge,” he added.
