Swiss chemicals giant Sika has has opened a new production plant for concrete admixtures in Saudi Arabia to capitalise on planned mega projects in the kingdom.
Located in Dammam on the east coast, the new factory enables Sika to increase its production capacity and save on logistics costs by getting closer to customers, the company said.
In an effort to diversify its economy away from oil, Saudi Arabia has launched a string of ambitious development schemes, including a $500bn technology city, called Neom, and a vast tourism centre on the western Red Sea coast.
Until now, Sika supplied its customers in the Saudi capital Riyadh, and the east coast, with admixtures made in Rabigh, more than 1,000km away.
The new plant can also supply customers in neighbouring markets around the Persian Gulf.
Ivo SchÃ¤dler, Regional Manager for Sika Europe, Middle East and Africa, said: "Producing locally in Dammam brings us closer to our customers on the east coast of Saudi Arabia and opens up further growth potential.
"At the same time, the optimised supply chain will help strengthen our competitiveness in the market."
Image: A view of Riyadh, the Saudi Capital (Sika AG)