Tawfiq Al-Rabiah, minister of commerce and industry, and chairman of the board of directors of Saudi Industrial Property Authority (MODON), has opened Azbil Saudi Ltd.’s factory, and a number of new plants in the Dammam’s second industrial city.

The plants were opened in the presence of a high-level delegation from the Japanese Embassy in Riyadh, a delegation from the Japanese company Azbil and MODON General Manager Saleh bin Ibrahim Al-Rasheed, as well as officials and directors of various departments, businessmen and industrialists.

During his tour, the minister was briefed on the company's business plan. He praised the strong trade and investment relations between the two countries and noted that Japan is the Kingdom’s second trade partner and one of the largest investors.

The company’s factory has gained special importance because of its location here and adding value to the national economy. The company, which has been allocated a vast area by MODON, manufactures and sells control valves with a production capacity of up to 12 tons, in addition to selling products and systems for plant automation processes.

Al-Rabiah also opened a factory of Titanium & Steel Manufacturing Co. Ltd. (TSM Arabia) for the production of heat exchangers, pressure vessels, pipes and fittings with capacity of 12,000 tons per year. The total area of the factory is 21,000 sqm.

A factory for Schlumberger Ltd. Company for oilfield services was also opened by the minister.

Al-Rabiah said the Kingdom ranks 18th among G20 nations and in 2014 the Saudi GDP is expected to stand at around SR3,000 billion.

He stated that the industrial sector forms more than 12 percent of the annual GDP in the Kingdom, adding that the Kingdom offers different incentives to industrial projects, including land and up to 75 percent loans for ventures in addition to the easing of bringing equipment, machinery and raw material to the Kingdom.

Al-Rasheed said that the second industrial city of Dammam was founded in 1978 on a total area of 25.5 million sqm to meet the growing demand for industrial land in the region.

He said: “It currently has about 972 factories in operation or under construction, including local and global industries such as transport vehicles of Isuzu Motors Ltd. and Modern Industries Company.”

Al-Rasheed added: “The industrial city is witnessing many development projects, including those related to infrastructure, at a cost of SR61 million, establishing electric converter station at a cost of SR67 million. The industrial city also has the largest artificial lake in the Kingdom.”