21 August 2013
Red Sea Housing, a prefabricated accommodation provider, is to invest $22.6m in a manufacturing plant in King Abdullah Economic City, Saudi Arabia.
The plant will be the company’s second in Saudi Arabia and fourth worldwide.
The 193,000 sq m facility is expected to boost the company’s overall production capacity by 35%, to one million sq m annually.
Investor relations manager Mohammed Othman Mallawi said the new facility will target projects in remote locations and the prefabricated housing sector in the Kingdom.
He anticipates a surge in demand for modular buildings for labour accommodation given the numerous oil and gas and mining projects there, plus the several economic and industrial cities being developed, all of which require substantial manpower.
The first phase of construction will commence at the end of 2013 and the facility is expected to be operational in the second quarter of 2014.
According to a company statement, the new plant will be financed through Red Sea Housing’s internal cash flow, in addition to credit facility lines and local bank loans.
Source: Saudi Gazette