Changan Automobile eyes Middle East Localization

Wang Jun, president of Changan Automobile and CEO of Changan
Wang Jun, president of Changan Automobile and CEO of Changan
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Updated 05 September 2024
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Changan Automobile eyes Middle East Localization

Wang Jun, president of Changan Automobile and CEO of Changan

With Changan Automobile’s focus on the Middle East, the region has assumed a strategic significance in the Chinese automobile manufacturer’s global growth strategy. The company established Changan’s largest flagship store in Riyadh and is building user centers and parts distribution centers for the Middle East region — all aimed at significantly enhancing the user experience.  

Wang Jun, president of Changan Automobile and CEO of Changan Technology, said: “We consistently uphold the mission of ‘leading automotive culture and benefiting human life,’ and are actively transforming into a smart, low-carbon mobility technology company. Our strategy clearly emphasizes delivering products, technology, and services to users worldwide. Moreover, there is user demand. In recent years, we have observed that consumers in Saudi Arabia and the Middle East increasingly prefer high-tech and sustainable vehicles and have higher expectations for an enhanced mobility experience, hence aligning deeply with our product and brand philosophy.

“Through the rapid development of smart, new energy, and intelligently connected vehicles in China, Changan has achieved a high level of global leadership, giving Chinese brands a competitive edge in this area. Changan Automobile has also made significant progress in the development of smart new energy, resulting in new, competitive products and services. We aim to offer these products and services to users worldwide, including those in the Middle East, providing them with more choices for better products and higher-quality services.”

Changan is customizing its products and services to meet the unique needs and preferences of customers in the Middle East. 

Jun said: “Under the guidance of the ‘Vast Ocean Plan,’ we aim to move beyond China and integrate into local markets. We have established the Middle East and Africa Division in collaboration with investors and dealer partners, to accurately understand the local user needs, to develop versatile products and provide a customized service. 

“An adaptive approach to development is essential, alongside the understanding and modification in order to fit the unique needs of Middle Eastern customers. By conducting adaptive development of vehicles based in regional geography and climate, as well as local conditions and driving habits, the products and services are designed to suit the market. 

For example, Saudi Arabia is a very hot country, and we need the products to endure this extreme heat. With this in mind, since 2014 Changan has conducted extreme heat tests (Summer Test) for 10 consecutive years, involving more than 50 models, over 80 Changan engineers, and approximately 1 million kilometers of verification to enhance vehicle performance, durability, and safety. Due to these extreme heat conditions, Changan has focused on continuously optimizing its air conditioning system, making it one of the coolest in the market. In the future, we will further advance the localization of R&D capabilities.” 

The president said that customized services are also very important. “Though market research we found that most Saudi users park their cars outdoors, which makes the vehicles very hot when users enter. Through our collaboration with Huawei Cloud, we are launching smart and connected car solutions in the Middle East this year, enabling remote vehicle control, allowing users to turn on the air conditioning in advance, so the car is cool when users enter. The Qibla compass is also a specialized feature we designed for Muslim drivers, helping them easily determine the direction of Makkah in order to pray, fully reflecting and respecting local cultural practices. At the same time, we are preparing to establish regional subsidiaries and exploring a ‘dual-engine’ strategy for integrated operations and regional dealer partnerships. We are also setting up a regional[21]  parts distribution center in the UAE and developing a professional maintenance team to continuously improve the user experience.”

Highlighting Changan’s initiatives toward reducing its carbon footprint and promoting green technology in its vehicles, Jun said the company’s strategy is actively responding to the Saudi government’s Vision 2030 and is firmly committed to pursuing a path of high-quality development with an emphasis on ecological priorities, green, and low-carbon growth. “We will continue to strengthen ESG initiatives, promoting economic and social development in the regions where we operate, while actively fulfilling our responsibilities and obligations as a global company — specifically in areas such as resource conservation, environmental protection, and public welfare,” he added.

On the product side, Changan Automobile adheres to a multi-technology development approach. Jun said: “We have substantial technological reserves in various powertrain types, including pure electric, plug-in hybrid, range-extended, and hydrogen fuel, offering consumers a diverse range of mobility options for all scenarios. 

“On the manufacturing side, the green and low-carbon concept has been integrated into all aspects and stages of Changan Automobile’s operations. Several advanced low-carbon and energy-saving technologies have been promoted and applied. Our Chongqing, Hefei, and Hebei plants have built photovoltaic power stations with a combined capacity of approximately 79 MW, generating green clean energy for self-use. Over a year, these stations have consumed 57.6 million kWh of green electricity, reducing 50,000 tons of carbon emissions. 

“Changan is also strengthening its full-cycle carbon footprint management, concentrating on tasks such as a recycling system construction and comprehensive resource utilization. Through Changan, we are also exploring the establishment of advanced, easily replicable EPR models for automotive products. 

“Furthermore, we promote the application of low-carbon materials and technologies, and have completed research on 15 types of low-carbon and lightweight technologies, including recycled aluminum, bio-based nylon, and variable-strength hot stamping. It is also worth mentioning that we have developed and implemented low-carbon process technologies such as circular recycling of painting, cleaning solvents, reclaimed water reuse, and sludge drying, aiming to improve resource utilization rates and achieve waste resource recovery, recycling, and emission reduction.” 

Commenting on Changan’s key achievements over the past 30 years, Jun said: “We have gained global recognition and trust from our users, driven by our commitment to providing customers worldwide with new and competitive products and services. As a result, we have gained global recognition and have become the choice of over 40 million users. Furthermore, we have deconstructed the automotive industry into ‘research, production, supply, sales, and transportation’ centered around the product, and ‘buying, selling, using, repairing, and servicing’ centered around the user.”

He also mentioned the company’s partnerships with over 1,100 global suppliers and more than 9,300 global dealers, established over the years, contributing to the sustainable, high-quality development of the automotive industry.

“Our strategic goals further align with the principles of the automotive industry and are steadily advancing their implementation. Changan has always upheld the mission to ‘lead auto culture and benefit human life,’ and we are firmly committed to transforming into a smart, low-carbon mobility technology company, advancing toward becoming a world-class automotive brand. We have divided our strategic vision into specific goals for 2025 and 2030 respectively and have broken down the objectives into actionable tasks through detailed policy implementation, ensuring these goals are iterative, actionable, and achievable.”

Jun said Changan remains committed to long-termism, localization, and a focus on ESG in its globalization strategy. 

He said Changan has remained at the forefront of automotive technology, including electric vehicles, smart driving, and sustainability. “We have defined a strategic plan for intelligence and this includes ‘The Dubhe Plan,’ and ‘New Cars, New Ecosystems.’ By focusing on new intelligent automative solutions we are rapidly building Changan Automobile’s core competencies in smart technology. Digital-intelligent products, technology, manufacturing, and management is also essential.

“To strengthen the organization we have also established 16 technology and product R&D centers, all focused on areas such as electronic and electrical architecture platforms, intelligent driving, and smart cockpits. This has allowed us to build core capabilities in chips, devices, maps, cores, clouds, networks, and satellites. Additionally, we have recruited over 50 experts in software, algorithms, and AI, to assemble a team of more than 2,000 individuals dedicated to creating new vehicles.”

He said the automaker is committed to ensuring that its annual R&D investment accounts for no less than 5 percent of the revenue. “Looking ahead, we plan to invest over 200 billion yuan ($28.1 billion) in intelligence and will continue to explore and promote the establishment and operation of local R&D centers, with adaptive development for local markets. 

“It is also worth mentioning that we have a comprehensive product and technology system in place to ensure strong capabilities and support. We have established the CA-PDS development system, CA-TVS testing and verification system, and CA-DDS design management system, along with a robust ‘Iron Triangle’ supplier relationship, all centered around the entire industry chain. At the same time, we continuously iterate and innovate, driving transformative changes in the four major processes: R&D, manufacturing, supply, and marketing,” Jun added.

Commenting on Changan’s vision for the next decade, especially in light of the rapidly evolving automotive industry, Jun said: “Looking to the future, Changan Automobile will proactively recognize, adapt and drive change, employing strategic thinking to plan comprehensively and embrace transformation to meet any challenges. We have continually reviewed and optimized our Innovation and Entrepreneurship Plan since its 2017 launch, and we are now at version 8.0. With our focus on three major initiatives — ‘Shangri-La,’ ‘The Dubhe Plan,’ and ‘Vast Ocean Plan,’ we are fully reinforcing our development foundation. 

“Further expanding our global presence, particularly in emerging markets such as the Middle East, is also key. We will continue to adhere to the development principles of localization, long-term commitment, and sustainability, to strengthen local partnerships and launch more than 10 global products in the future.”

Jun believes that acknowledging competition and continuously improving their products is the only way to navigate the challenges of the global market, particularly in emerging economies like those in the Middle East.

“Only competition can drive innovation and development. Strategic guidance is essential, and we remain committed to realizing our grand vision of building a world-class automotive brand, and using this strategic vision to guide our development,” Jun said.

He said that product excellence is also king, and the company continuously develops new technologies and solutions to maintain its industrial dominance, by consistently providing products and services that satisfy consumers. 

“Full cooperation will also establish long-term sustainable systems, business partnerships, and strong communication with governments and the public ... Creating an environment of mutual respect and equality among different cultures will enable us to develop in a sustainable way in the long term,” Jun added.


Al-Masane mine expansion to boost zinc & copper production

Al-Masane mine expansion to boost zinc & copper production
Updated 30 September 2024
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Al-Masane mine expansion to boost zinc & copper production

Al-Masane mine expansion to boost zinc & copper production

As part of its ongoing commitment to achieving sustainable growth, and in line with its strategic growth plan for 2025, Al-Masane Al-Kobra Mining Co. has completed the development of the Moyeath underground zinc and copper orebody and the Moyeath process plant. The development will contribute 400,000 tonnes per year of additional ore processing capacity to the business.

AMAK is a pioneer in the Saudi mining industry, and one of the largest producers of zinc, copper, gold and silver. The expansion project was inaugurated by Najran Province Gov. Jalawi bin Abdulaziz bin Musaed, on July 26, 2022.

The newly established processing unit, built to the highest global technical and quality standards, significantly improves the efficiency and quality of zinc and copper concentrate production. The total concentrate production for the business is expected to increase by approximately 80 percent for zinc and 40 percent for copper.

The total combined production will be 30-40 kt of copper concentrate, 60-80 kt of zinc concentrate, 25-35 koz of gold doré, and 40-50 koz of silver doré. Zinc and copper concentrates also contain approximately 10 koz of gold and 450-500 koz of silver.

AMAK CEO Geoff Day said: “Launched in 2022, this milestone project marks a pivotal achievement in our journey. Today, we proudly celebrate the completion of this expansion project — another value-adding step toward realizing our strategic growth objectives. It stands as a testament to our unwavering commitment to enhancing operational efficiency and unlocking new growth opportunities for the future, in line with the Kingdom’s Vision 2030.”

The improved operational efficiency and additional production capacity was designed to lower production costs, optimize output, and ultimately contribute to stronger margins, positioning the company for sustained growth and financial stability in the coming quarters.

The project’s completion aligns with AMAK’s strategic growth plan for 2025, announced earlier this month. This strategy focuses on several key pillars, including enhancing current growth opportunities, expanding existing primary and secondary sites, exploring new business opportunities such as launching a specialized exploration drilling company, acquiring additional exploration tenements, followed by efficiently assessing the new tenements and fast tracking them into development.


AlForno: a modern bistro experience in the heart of Makkah

AlForno: a modern bistro experience in the heart of Makkah
Updated 30 September 2024
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AlForno: a modern bistro experience in the heart of Makkah

AlForno: a modern bistro experience in the heart of Makkah

The city of Makkah witnessed a special event last week, with the grand opening of AlForno, a traditional yet modern bistro providing an exceptional dining experience that blends authenticity with innovation. The bistro is located in Jabal Omar Hyatt Regency Makkah, which is a one-minute walk from Al-Masjid Al-Haram.

The opening was attended by a diverse group of social media influencers, food enthusiasts, prominent journalists, and business leaders, all eager to discover the bistro’s unique dishes.

The evening began with a warm welcome for guests featuring traditional Hijazi singing (Al-Jasis), accompanied by welcome drinks and local desserts reflecting a variety of cultures while celebrating Saudi heritage. The ceremonial ribbon-cutting was performed by the hotel’s general manager and staff, along with several guests, adding a special touch to the event.

The opening ceremony included a dinner featuring a variety of innovative dishes prepared using locally sourced ingredients. The menu was carefully crafted to combine traditional flavors with modern techniques, providing guests with a truly unique dining experience. A special presentation was made to guests about the bistro’s philosophy and vision for delivering exceptional culinary experiences. Attendees had the opportunity to taste several signature dishes created by experienced professional chefs. Each dish tells a story inspired by the cultural heritage of Saudi Arabia, with a contemporary twist that reflects global influences.

The bistro’s vision aligns with the goals of Saudi Arabia’s Vision 2030, to enhance the culture of tourism and promote cultural experiences within the Kingdom. AlForno seeks to be a comprehensive cultural and tourist hub, bringing together pilgrims and travelers to share stories, and experiences, and create unforgettable memories.

The bistro’s ambiance is warm and welcoming, featuring an interior design that combines modernity with tradition, making every guest feel at home. AlForno also provides a space for social interaction, allowing guests to enjoy shared experiences while dining.


Gulf Air inks deal with Almatar in first collaboration with OTA in Kingdom

Gulf Air inks deal with Almatar in first collaboration with OTA in Kingdom
Updated 30 September 2024
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Gulf Air inks deal with Almatar in first collaboration with OTA in Kingdom

Gulf Air inks deal with Almatar in first collaboration with OTA in Kingdom

Gulf Air, the national carrier of Bahrain, has entered into a strategic partnership with Almatar, a Saudi travel technology company, to enhance digital operations between the two entities.

As part of the partnership, Gulf Air will integrate its new distribution capability API with Almatar’s booking platform, enabling Almatar to offer Gulf Air’s products and services, such as seat selection, additional baggage options, refunds, and reissue services. This will provide travelers with a more advanced, flexible, and seamless booking experience.

The partnership marks a key milestone in the digital transformation journeys of both Gulf Air and Almatar. It makes Almatar the first online travel agency in Saudi Arabia to collaborate with Gulf Air, setting a new industry standard.

Jeffrey Goh, CEO of Gulf Air Group, said: “We are excited about this partnership that opens new digital distribution avenues for Gulf Air products. The integration of the NDC system with Almatar’s platform will enhance operational efficiency and improve the way the airline delivers exceptional services to our customers. Gulf Air is dedicated to adopting modern technology to offer flexible and user-friendly travel solutions, solidifying our competitive edge in regional and global markets.”

Youssef Abdullah Al-Rajhi, chairman of Almatar, added: “This agreement is a landmark in Almatar’s journey as a digital travel solutions provider. We are proud to collaborate with Gulf Air, the national carrier of Bahrain, one of the most reputable airlines in the region. We are also the first OTA company in Saudi Arabia to partner with Gulf Air, and the integration of NDC will enable us to expand our services and provide an advanced travel experience to our customers.”

He said the partnership with Gulf Air is a strategic move that strengthens Almatar’s market presence and helps it serve a broader customer base. It will significantly enhance the efficiency of online bookings and allow it to deliver high-quality services that meet the increasing demands of the travel industry.


GEN PLUS Group appoints Wael Mahdi as chief growth officer for MENA

GEN PLUS Group appointed Wael Mahdi as chief growth officer for the Middle East and North Africa region.
GEN PLUS Group appointed Wael Mahdi as chief growth officer for the Middle East and North Africa region.
Updated 30 September 2024
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GEN PLUS Group appoints Wael Mahdi as chief growth officer for MENA

GEN PLUS Group appointed Wael Mahdi as chief growth officer for the Middle East and North Africa region.

GEN PLUS Group, a global independent group of agencies, has announced the appointment of Wael Mahdi as chief growth officer for the Middle East and North Africa region. This key leadership role underscores the group’s commitment to expanding its presence in the region, with a particular focus on Saudi Arabia and its Vision 2030 transformation. GEN PLUS Group recently established its regional headquarters in Riyadh to support this mission.

Wael Mahdi brings over 20 years of experience in communications, media and journalism to his new role. He holds a bachelor of arts in political economy from the American University in Cairo and has held various senior positions at prominent organizations such as NEOM and the Saudi Research and Media Group, where he made a significant contribution across multiple outlets. His career also includes contributions to respected publications like Arabian Business, Alwatan, The National, and Asharq Alawsat, as well as nearly a decade with Bloomberg, where he covered business and energy news across the GCC.

Sofia Panayiotaki, CEO of GEN PLUS Group, said: “We are excited to welcome Wael Mahdi to our leadership team. His extensive experience in strategic communications and content creation will be invaluable as we strengthen our role in supporting Saudi Vision 2030 and helping brands in the Kingdom and the MENA region grow and thrive.”

Mahdi added: “I am thrilled to join GEN PLUS Group at such a pivotal time of growth and transformation in the region. I look forward to contributing to the group’s mission by driving impactful content and narratives that align with Saudi Arabia’s ambitious goals to spur economic activity and attract global investors.”

GEN PLUS Group is a global leader in integrated communications and holistic brand storytelling. With a diverse network of over 3,000 experts representing 67 nationalities, the group operates in more than 100 countries. GEN PLUS Group provides a comprehensive suite of services, including creative marketing, PR, digital strategy, social media and content development, all driven by its signature “PLUS” philosophy.

In Saudi Arabia, GEN PLUS Group empowers brands, and partners with groundbreaking projects and initiatives to support Saudi Vision 2030.


TUV Rheinland CEO sees incredible opportunities in KSA

TUV Rheinland CEO sees incredible opportunities in KSA
Updated 29 September 2024
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TUV Rheinland CEO sees incredible opportunities in KSA

TUV Rheinland CEO sees incredible opportunities in KSA

With Vision 2030 aiming to create a strong and thriving Saudi Arabia with sustainable development that provides opportunities for all, it is a great privilege to see the vision being implemented, said Dr. Michael Fubi, CEO and chairman of the executive board of management of the German consultancy firm TUV Rheinland.

TUV Rheinland recently unveiled its regional headquarters in Riyadh, reflecting the Saudi capital’s ongoing success in attracting fresh investments in line with the goals outlined in the Kingdom’s Vision 2030.

Sharing his outlook on Saudi business and economic reforms, Fubi said: “When I look at it, I see a number of developments coming up. With Vision 2030, a great many things have begun. For me, it’s so incredible to see that it’s not only a vision but also a vision being implemented. This means a great deal of investment and new industries are being promoted here in the Kingdom.”

“I see a bright future because so many developments are already taking root,” he added.

Fubi recently held fruitful meetings with Saudi Investment Minister Khalid Al-Falih, SASO Gov. Dr. Saad Al-Kasabi, and senior officials from the Ministry of Industry and Mineral Resources.

Concerning German companies in Saudi Arabia, the TUV official said that German companies are well known for high-quality materials used in manufacturing processes; for example in power generation, particularly wind power, as well as in the photovoltaic sector. “We have been active in these sectors for more than 40 years. I think a number of German companies will contribute to the ongoing transformation in the country,” he said.

On his long working experience in Saudi Arabia, he said: “We started small, nearly 20 years ago. We started with a handful of people. And from there we developed, always looking at what the needs in the Kingdom were. Our purpose was — and is — to make the world a safer place. That means we always look for where we can contribute.”

“On the one hand, we are quite active — for example, in the oil and gas sector where operators need to function safely and also active in construction supervision and in training people. That is an area close to our hearts, training and educating people to do
high-quality work in their jobs. We operate eight national industrial training institutes and have also set up a drilling academy,” he added.

On the rising profile of Riyadh, the CEO said: “In the last few years, we have embarked on Vision 2030. I have seen huge changes and particularly very quick transformations. I was here before the COVID pandemic and then I was away for two and a half years. And in that period so many things changed and happened which people here may not have noticed but having been away and come back, I certainly noticed. The speed of change and the development in Riyadh has been amazing as it has become an international metropolis. With Riyadh hosting Expo 2030, that will be another milestone and will bring in people from all over the world to see the changes.”

“Saudi Vision 2030 is a major milestone for this country and will reduce the dependency on oil and gas and develop other sectors to ensure that in the long run there are value-added services within the country along with a growing young population,” Fubi added.