Invests SAR100 million in highly-automated factory

Total capacity reaches an outstanding 110 million liters of paint and coatings in the kingdom

Yanbu, Saudi Arabia, November 18, 2009: Jotun Saudia Co, Ltd., the local subsidiary of the Norwegian paint & coatings producer Jotun A/S, inaugurated today its new SAR 100 million, state-of-the-art factory in Yanbu. The new factory was set up adjoining Jotun's existing factory covering a total area of 34,000 square meters in Yanbu in response to the growing demand for high quality paints and coatings, supported by the expanding construction industry in the Kingdom. 

The inauguration of the new factory was attended by its Saudi Arabian founding partners, Sheikh Marie Bin Mahfouz and Sheikh Ahmed Al Amoudi, along with senior executives from Jotun A/S, including Odd Gleditsch Dy, Chairman, Odd Gleditsch Jr, Norwegian partner, Morten Fon, President & CEO, Jotun A/S Norway, Gunnar Thoresen, MD, Jotun Saudia Co. Ltd. Also present were Sheikh Ibrahim Badawi, Chairman of Commerce & Industry of Yanbu, and H.E. Carl Wibye, Norwegian Ambassador to Saudi Arabia as chief guests for the inauguration.

It is worth to mention Jotun has pioneered a number of trends in the market introducing concepts like computerized tinting; special effect paints, and has been in the forefront in introducing new products that are environment friendly and goes a long way in meeting the changing aspirations of the consumer.

With the inauguration of the new factory Jotun's installed production capacity in the Kingdom reaches 110 million liters of paint, making it one of the largest in the Middle East.

State of the art technologies have been used in the factory which boasts a high degree of automation and exclusively produce water borne paints.  The fully air conditioned factory uses silos and tanks for handling of bulk raw materials limiting human effort and cutting production time. As well as usage of closed production systems & recycling plants drastically reduces emission.  The plant is also equipped with high expansion foam systems to combat fires used to ensure the highest standards of operational safety and a healthy work environment.

"Jotun's expansion in Saudia Arabia reflects the continued industrial growth of the country and the many opportunities it provides for major international players such as Jotun," said Sheikh Marei Bin Mahfouz. "I am delighted to be part of Jotun's vision and am looking forward to seeing the factory in full operation"

"Saudi Arabia is an important market for Jotun, supported by the country's robust economic fundamentals and Jotun's rich heritage and experience," said Sheikh Al Amoudi. "The construction industry here in the Kingdom continues to grow rapidly, providing a conducive environment for firms such as Jotun to harness the resulting growth opportunities."

Odd Gleditsch Dy, Chairman, Jotun A/S, Norway, said: "The Yanbu development is a reflection of our commitment and support towards Saudi Arabia. Not only does this represent a significant business opportunity and development of the industry, but it also enables us to contribute to the Saudi community by creating career and development opportunities." 

Gunnar Thoresen, Managing Director, Jotun Saudia Co. Ltd. stated: "We are witnessing a steep incline in the development of Saudi Arabia's infrastructure. Therefore the timing of our expansions and investments with in the Kingdom fall in hand with the rapid development of this country and the resultant demand for Jotun paints."

He added that Jotun's strong commitment towards the Kingdom has always played a crucial role throughout its presence in Saudi Arabia. The company has been dedicated to the empowerment of local communities and has carried out various corporate responsibility programs such as training high school students during the summer holidays, sponsoring various orphans children programmes and charitable causes.

The inauguration of the new factory comes in a year when Jotun celebrates 25 years of its presence in the Kingdom of Saudi Arabia.  The inauguration function in the morning was followed a gala celebration in the evening in Jeddah which was attended by over 500 guests comprising of Jotun's customers, suppliers, government officials, employees & visiting dignitaries.

The new factory represents Jotun's strong faith & belief in the long term prospects of the Kingdom of Saudi Arabia and the ability of its wise leadership to take this country to greater heights.

-Ends- 

Jotun entered the Saudi Arabian market in 1984 under a partnership with the Marei Bin Mahfouz & Ahmed Al Amoudi Group, forming The company: Jotun Saudia Co Ltd. Jotun's operation in the kingdom is one of its largest in the world

Jotun is the leading paint manufacturer in the kingdom and is one of the top paint manufacturers in the world with a network spanning 70 countries on all continents of the globe, providing solutions for all needs of paints & coatings from decorative to protective to marine.

The total investment budget for the new project is 100 million SAR.  In addition to this, Jotun is embarking on an aggressive strategy to expand its market share and upgrade the level of paint understanding & its usage in the local market.

Media Contacts:
Shashi Kumar / Faisal Karim
Jotun Saudia Co. Ltd.
T: +966 2 635 0535
F: +966 2 636 2483
E: shashi.kumar@jotun.com / faisal.karim@jotun.com

Bashar Kharbat / Abutaleb Quashem
Asda'a Burson-Marsteller
T: +966 2 657 5194
F: +966 2 657 5277
E: b.kharbat@asdaa.com / a.quashem@asdaa.com

© Press Release 2009