RIYADH, 1 May 2007 -- Amid the Kingdom's booming construction industry, Business Development of Construction Products Holding Company (CPC) -- a newly formed Saudi closed joint stock company -- unveiled a plan to set up a multi-million industrial zone in the capital city which would house factories to produce a wide range of materials for building industry.
Dr. Faysal Alaquil, director of Business Development of CPC, said at a press conference held here yesterday that the zone is being set up on a 200,000-square meter land on Al-Kharj Road, at a cost of SR24 million. The project will be completed by the second half of this year, he added.
"We have an initial capital of SR107 million and we are committed to pump another SR400 million to develop the project," Alaquil, who is also the secretary of the board of directors and official spokesperson of CPC, said. He added that 39 percent of the capital is owned by Bin Laden Group and the balance by individuals and some companies. A pre-cast factory and a steel factory are being built in the new complex that would start production on July 15, he said. As a further manifestation of its commitment, he noted that CPC plans to transfer under one roof the group's existing construction-related factories. "We hope to cater to 45 to 65 percent of the construction material market in the Kingdom," he pointed out.
The other factories that will be established in this complex include, marble and granite, drapery factory for interior decorations, production of furniture, windows, doors and pantries, aluminum and glass products, chemicals and additives needed for construction industry, cable and electro-mechanical products. "There will also be a transport company along with these factories to ferry the products to the respective customers."
A total of seven companies will function under the umbrella of CPC. They include Marble and Granite International Company, Saudi Company For Development of Construction and Trading, Adhesive Transport Company Limited, United Arab Aluminum Company, Bahra Steel and Pre-cast Manufacturing Company Ltd.
Alaquil said the presence of all the factories in one industrial area will facilitate the provision of supporting services and reduce the cost of managing all the factories, thus strategically realigning CPC through expansion in the industrial and construction markets.
He disclosed that the group has purchased an 840,000-square meter land in Bahra, located between Jeddah and Makkah, to serve as a base for all its building and construction products. Bahra Company for Construction Steel has been already established there covering an area of 40,000 square meters, he added.
Alaquil further said that geographical scheme is already in the pipeline "to increase its volume of activity and production capacity through a strategic expansion plan to accommodate new markets" in the region.
Recently, CPC entered into an agreement with Arkan Building Materials (Arkan) of Abu Dhabi to establish 6 limited liability factories for producing building materials, plus one transport company in Abu Dhabi. "The $200 million deal was signed on Jan. 22 at Arkan headquarters between CPC, and Sheikh Salem Ibn Mohammed Al-Zahiri, Arkan CEO, is a testament of CPC's expansion in the region," he said.
The company had also purchased a 265,000-square meter lot in the industrial zone of Adra, Syria, for building an industrial complex.
"It will boost the company's presence in the neighboring countries in its drive to streamline the supply of construction products, with a registered capital of $170 billion," he added.
CPC has also bought a land for a project in Egypt at a cost of 22 million Egyptian pounds. Alaquil said CPC is exploring similar opportunities in countries such as Yemen, Algeria and Kuwait.
By Mohammed Rasooldeen
© Arab News 2007
