Isuzu to export trucks with logo ‘made in Saudi Arabia’

Updated 10 December 2012
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Isuzu to export trucks with logo ‘made in Saudi Arabia’

Dr. Saleh Al Rashid, general director of the Saudi Industrial Property Authority (MODON), declared that “the Isuzu Motors factory in Dammam will launch its production this weekend”. He said that the factory is considering exportation after covering the needs of the local market. He pointed out that the factory will encourage industrial investments related to the automotive industry while at the same time working accordingly to create investment opportunities in this field.
Al Rashid’s statement came after the Industrial Cities Authority yesterday announced the production of the first light vehicle in cooperation with Isuzu Motors Ltd. It has signed an agreement with the company to allocate the first industrial project in the area on a land area of 120,000 square meters in Dammam Second Industrial City in order to set up an integrated auto and truck-manufacturing factory.
Dr. Tawfiq Al –Rabiah, Minister of Commerce and Industry will inaugurate the factory.
“The most important benefits of the Isuzu factory in Saudi Arabia are the low prices of trucks compared to the past in terms of import and will create a conducive environment for investment in factories to support the industry. This is all in the interest of the Saudi economy,” Al Rashid pointed out.
“The producing costs of cars in Japan are high. The costs of energy, for example, is four times more than their cost in Saudi Arabia,” the General Director of (MODON) pointed out.
“There are supporting industries for auto industries in Saudi Arabia such as the manufacturing of batteries, body structures, front and rear bumpers and rims. Therefore, there are large and successful opportunities in this area for industrial investors, as we are encouraging them to take advantage of them,” he added.
For his part Mr. Ibrahim Alrashudi, Vice President at Isuzu Motors Saudi Arabia declared that the company will need a period of three years to cover all the needs of the Saudi market for trucks, pointing out that the second phase will include the production of about 20,000 trucks a year.
Alrashudi said that “the demand for trucks in Saudi Arabia is huge.” He pointed out that Isuzu could acquire 50 percent of the truck market as a whole. “We shall work to increase our share after launching the Isuzu factory in Saudi Arabia, which will see an expansion plan in the coming years.”
“The Isuzu factory in Saudi Arabia will represent a quantum leap for the industry. We encourage Saudi youth to engage in business related to this industry because of the large job opportunities available,” Alrashudi added.
It is expected that the production capacity of the industrial project will reach 25,000 trucks a year by 2017.
The plant will provide 800 jobs and the volume of exports will reach 40 per cent of the total production.
(MODON) pointed that the factory project is one of the most important projects at the Industrial Cities which sought to nationalize global technologies in the industry, in particular through one of the world’s largest specialized Japanese companies.


Saudi aircraft firm reveals major growth plans

Saudi military industry aims to create jobs for Saudi people and increase the Kingdom’s export potential. SPA
Updated 16 min 17 sec ago
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Saudi aircraft firm reveals major growth plans

  • The AACC signed an agreement to handle maintenance of C-130 aircraft system with the Saudia Aerospace Engineering Industries
  • The AACC signed an agreement to maintain landing systems with Saudi Arabian Airlines

JEDDAH: The new Aircraft Accessories and Components Company (AACC) headquarters at King Abdul Aziz International Airport in Jeddah were officially opened on Friday by Saudi Arabian Military Industries (SAMI) Chairman Ahmed Al-Khatib.

In his opening speech, Eng. Mansour Al-Eid, AACC’s chief executive, said that the establishment of the General Authority for Military Industries and SAMI had helped to create jobs for Saudi people, boost the national income and increase the Kingdom’s export potential.
SAMI aims to contribute around SR14 billion ($3.73 billion) directly to Saudi Arabia’s gross domestic product (GDP).
Al-Eid said that the AACC aims to increase its job localization rate from 62 percent to 80 percent in the next two years.
The company is planning to increase repair capacity for Typhoon jets and the manufacture of major spare parts and hydraulic systems for the Hawk and Pilatus PC-21. It will also focus on the repair of landing systems for civilian aircraft and Lockheed C-130 aircraft systems — a first for the Middle East and North Africa region.
Al-Eid confirmed the company can now carry out maintenance on the largest commercial aircraft, including Boeing 777, and Airbus 320 and 380, in its facilities.
Al-Khatib witnessed the signing of several agreements between AACC, represented by Al-Eid, and Saudi Arabian Airlines, BAE Systems Saudi Arabia and the Saudia Aerospace Engineering Industries.
The AACC signed an agreement to maintain landing systems with Saudi Arabian Airlines, represented by its Director General Saleh Al-Jasser.
It also signed an agreement with BAE Systems Saudi Arabia, represented by Khalid Al-Otaibi, vice president for localization, for the localization of Typhoon and PC-21 hydraulic systems jobs.
The AACC signed an agreement to handle maintenance of C-130 aircraft system with the Saudia Aerospace Engineering Industries, represented by Mohammed Bahamaidan, vice president for the military sector.