King Abdullah Economic City (KAEC) has announced that Zahid Tractor & Heavy Machinery Co Ltd is to purchase a 225,000m2 plot of land in Industrial Valley-Phase 2. Zahid Tractor, which is part of the Zahid Group, intends to set up a new production factory at the site, and will use the facility for the construction and operation of Volvo and Renault trucks.
The new plant will be the latest of its kind in the Middle East. It will be developed over an area of 60,000m2 and is expected to produce 4,000 trucks per year. The facility will also bring around 400 jobs to the region.
“The new truck assembly plant, which will be constructed by Zahid Group, is considered a major milestone in the growth of King Abdullah Economic City,” said Fahd Al-Rasheed, managing director and CEO of KAEC. “The choice reflects the numerous advantages that KAEC offers to local and global companies, which create a unique atmosphere for investments.”
With the availability of housing solutions and a direct link with King Abdullah Port, KAEC’s Industrial Valley offers firms the potential to reach approximately 250m consumers across the Middle East and North Africa (MENA) region.
Amr Khashoggi, vice president of corporate affairs at Zahid Group, said: “We are proud of being here in King Abdullah Economic City, which is one of the most important outputs of the economic stimulation process and has supported the Kingdom in occupying a leading position among the most prominent investment areas in the region and the world.
“Our 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,” added Khashoggi. “In the upcoming period, we will be working on finishing the factory designs in order to start construction during the first quarter of 2014.”
