JEDDAH: Arab News
Published — Monday 10 December 2012
Last update 10 December 2012 2:43 am
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.