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Why local manufacturing is good for fleet buyers

Last month, UAE-based heavy equipment manufacturer Bion Industrial launched three new tippers, designed, developed and built entirely in the Emirates.

Although Bion Industrial – part of the Bion Group established in 2007 – has maintained a fairly low profile thus far, the launch event was a way of announcing its presence to the industry. And with construction and infrastructure projects gaining even more momentum in the GCC, it’s obvious that there’s a large and booming market, even for a relatively new company to tap into.

What’s also interesting about the launch is that it signifies the steady growth of the UAE’s manufacturing and industrial capabilities. As the country looks to diversify its economy, manufacturing is set to play a key role. Its contribution to the UAE’s GDP is expected to increase from the current 11% to a quarter of the total by 2025.

The growth of the manufacturing sector is clearly visible around the GCC as well, with heavy vehicle OEMs now leveraging the advantages of having production and assembly facilities in the region. The Volvo Trucks joint venture has now begun assembly at its new facility in Saudi Arabia.

These are encouraging developments for fleet buyers. After all, not only are local manufacturing and assembly companies more responsive to the demands of the local market, it suggests that a strong service offering will be part of the package.

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