JEDDAH: The Jeddah-based Construction Products Holding Co. (CPC) has joined forces with Herman Gutmann Werke AG of Germany to set up SR350 million aluminum extrusion and composite panel facility in Saudi Arabia.
Mu’taz Sawwaf, chief executive officer of CPC, and Theodoros Tzortzis, chairman of the board of Herman Gutmann, signed a memorandum of understanding (MOU) here yesterday to implement a joint investment in Jeddah by setting up of a state-of-the-art aluminum extrusion facility, as well as for a modern aluminum composite panel production line.
“The capital investment will be SR350 million and it will carry at an initial stage an annual production capacity of about 22,000 tons of extruded aluminum, including anodizing and powder coating facilities, as well as an output of some 1.5 million square meters of aluminum composite panel,” Faysal Alaquil, director, business development & administration affairs at CPC, said after signing the agreement.
The new facility will be located at Bahrah, near Jeddah and will be ready by the end of this year, Alaquil added.
“CPC will carry a 65 percent stake in the investment, while the remaining 35 percent will be controlled by Herman Gutmann and parent ALCO. Herman Gutmann (located in Weissenburg, Germany, has been engaged in the aluminum extrusion business for more than 70 years, and is part of the ALCO Group of Companies) will also provide the necessary know-how and technical support for this investment,” he added.
Alaquil said CPC, a closed joint stock company, based in Jeddah provides clients with a concept of a “One Stop Shop” facility for all their construction needs.
“Under the professional and experienced staff, CPC and its subsidiaries provide specialized vital construction materials ranging from precast, ready-mix, cut and bend steel, marble and granite, electromechanical systems, and electrical cables just to name a few, along with the administrative logistics support to serve the building industry under one umbrella and through one Industrial Park,” Alaquil said.
CPC Saudi Arabia has a work force of 8,700 at present. “We give much attention to Saudization,” he said, adding we are already approaching various technical institutes in the Kingdom to get trained staff for the purpose. “We also give training inhouse to our Saudi as well as other employees,” he added.
After successful introduction of Industrial Parks in Saudi Arabia, CPC called for the expansion into the international markets.
“Apart from its Industrial Parks in Bahrah, Jeddah and Riyadh, CPC currently established Industrial Parks internationally in Damascus, Abu Dhabi and Cairo,” Alaquil said.
He also said out of the total production of the new facility, 50 percent will be for local consumption while remaining 50 percent will be exported.
“Herman Gutmann is currently one of the fastest growing groups in the aluminum extrusion sector in Europe, with production facilities in Germany and Greece and an expanding distribution network with current trading hubs in Romania, the Middle East and the US,” Alaquil added.
