JEDDAH, 3 November 2004 — An SR700 million Saudi-Iranian tire factory will be established in the eastern industrial city of Jubail shortly as the Saudi Arabian General Investment Authority (SAGIA) has issued a license to implement the project.
The factory, considered first of its kind in the Kingdom, will have an annual capacity to manufacture 25,000 tons of tires for cars, buses, trucks and agricultural equipment, the Saudi Press Agency said. The Saudis will have an 80 percent stake in the venture.
In a ceremony held to mark the licensing of the factory, Amr Al-Dabbagh, governor of SAGIA, pledged that his organization would provide all facilities and services to establish the factory in coordination with the Royal Commission for Jubail and Yanbu.
Turki Al-Miqbas, supervisor of the project, said the factory would be established on a 300,000 square meter area in Jubail. Prince Bandar ibn Muhammad is the chairman of the factory’s board of directors.
