RIYADH, 24 November 2005 — Riyadh Governor Prince Salman inaugurated in the third industrial estate yesterday the expansion programs of five factories with a total investment of around SR1.364 billion.
These factories — Saudi Ceramic Co., Gulf Union Juice Factory, Maddad Toner Factory, Middle East Specialized Cables, SIG Combibloc Obeikan FZCO and SIG Combibloc Obeikan Company Ltd. - represent a typical example of the Kingdom’s burgeoning industrial expansion and export promotion drive.
Speaking at the Obeikan factory, Minister of Commerce and Industry Dr. Hashem Yamani said the industrial sector contributed last year SR92 billion, or 18.5 percent of the non-oil GDP. Industrial exports also surged from SR41.15 billion in 2003 to SR57.3 billion last year, representing a 39 percent increase over the previous year. The number of factories stood at 3,762 involving a cumulative investment of over SR 271 billion. In Riyadh alone the number of factories was 1,364 with an investment component of around SR38 billion.
Referring to the Kingdom’s accession to the World Trade Organization (WTO), Dr. Yamani said it would give a further push to exports, adding that the rising graph on the export front provided an eloquent testimony to the quality of Saudi products which are in conformity with international standards.
The minister said the economic reforms program of the Kingdom, including the transparency in the rules and regulations, had created an environment that was conducive to overseas investors. The measures would also go a long way in further diversifying the industrial base.
In his speech, Fahad Al-Obeikan, chairman of the Al-Obeikan Group, said investment in this joint venture project has reached SR300 million. The factory has a production capacity of two billion cans annually, while the sales were projected to reach SR800 million in the near future. Some 80 percent of the total production would be earmarked for exports with the rest consumed locally. On the employment front, some 300 job opportunities would be created.
The factory was inaugurated with foreign investment with Combibloc which is owned by a high tech company in the food industry. “We would like to thank SIG of Switzerland and Combibloc of Germany for their decision to invest in Saudi Arabia and hope that this would encourage India, Pakistan, Iran and other Asian countries to do the same,” he observed.
Speaking on behalf of SIG Holding Co. Ltd., the joint venture partner, Rolf D. Rademacher, president and CEO, said the joint venture companies created between SIG Combibloc, Germany, and the Saudi-based Obeikan Industrial Investment Group, were rapidly strengthening their positions as leading companies in KSA, Middle East and Africa providing aseptic beverage carton and the corresponding filling machines..
Two major initiatives were accomplished this year by the joint venture companies. The first was the recent alliance with Almarai Company Ltd., one of the largest food exporters in the Middle East and a leading brand name for milk and juice products throughout the Arabian peninsula. The second was the completion and start-up of the state-of-the-art packaging plant located in Riyadh.
At the Gulf Union Juice Factory Dr. Sulaiman Al-Rashodi, president, said the production capacity stood at 300 million liters per year and the factory was embarking on an expansion program as part of its export promotion drive.