Monday, Jun 02, 2008
DUBAI (Zawya Dow Jones)--Saudi-based Arabian Fiberglass Insulation Co., Afico, plans to build a new facility in Dammam, in the eastern province, that will manufacture insulation products made of glass wool, the company said Monday.
The move was approved by Afico's board on May 28, yet the project is to be reviewed and awaits final approval from the whole partners, Afico said in a statement on the Saudi bourse Web site.
Afico, a 51%-owned unit of Zamil Industrial Investment Co. (2240.SA) completed in January the main expansion works on its facility in Dammam.
With the expansion, Afico will raise its production capacity by 50% to meet the rising demand for its products, as Saudi Arabia is currently witnessing a construction boom, Afico said.
"Afico invested more than 60 million Saudi riyals ($16 million) to expand and upgrade its current facility," said Zamil's Chief Operating Officer, Abdullah Mohammed Al Zamil, who is also a board member of Afico.
Afico is also 49% owned by U.S-based Owens Corning Fiberglass Corp.
-By Reem Shamseddine, Dow Jones Newswires, +9714 374 8044 Reem.Shamseddine@dowjones.com
Copyright (c) 2008 Dow Jones & Company, Inc.
(END) Dow Jones Newswires
02-06-08 1449GMT
