UK-based full-scale developer Gulf Development International (GDI) announced on Wednesday that will build one of the largest volumetric modular assembly plants in the world in Saudi Arabia within the Neom giga-project at an investment of $1 billion. 

Volumetric modular construction is  a process where as much of the construction of the project is completed offsite and thereafter, assembled on-site. 

GDI CEO George Creel announced in a press statement that planning is underway on building a 1.4-million square metre site for the giga-factory, which will be the first project in Neom to break ground. 

When fully operational in late 2022, the plant will be capable of producing up to 12,500 modular units per year and provide 2,200 skilled and high-tech job opportunities for Saudis, the press statement noted. 

Additionally, it said, GDI has established Gulf Modular Industry Company (GMI), a licensed Saudi entity that will operate the factory. 

“This partnership touches on all of Neom’s pillars: allowing us to build a community of exceptional liveability, where innovative businesses like GDI can thrive while reinventing industry,” the statement said, quoting Neom’s CEO Nadhmi Al-Nasr. 

It said the plant will supply volumetric modular systems to support housing and hotels projects for Neom, and other Giga projects and initiatives in the kingdom as well export throughout the region. 

“GDI has arranged the private sector financing for this transaction, which speaks to the strength of the sound economic fundamentals of NEOM, and this venture specifically,” said Creel.  

Over the next three years, GDI expects Neom’s demand for the factory output to quadruple, which will position GDI to attract further foreign direct investment, he added. DLA Piper provided GDI with legal assistance on the factory project, according to the press statement 

(Writing by SA Kader; Editing by Anoop Menon) 

(anoop.menon@refinitiv.com) 

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