Latest news with #KAEC
Zawya
30-06-2025
- Business
- Zawya
Grade A warehousing demand surging as Saudi Arabia's economy expands
Saudi Arabia's logistics and warehousing sector is expanding at a rapid pace, propelled by a growing e-commerce market and rising need for Grade A warehousing, according to global real estate consultancy JLL. Among the key growth enablers are the Kingdom's industrial and logistics sectors located in special economic zones (SEZs) and industrial hubs in prime locations. Currently, 36 industrial cities offer ready-to-use facilities, including factories and storage units. Meanwhile, incentives and tax breaks at King Abdullah Economic City (KAEC), King Salman Energy Park (SPARK), and Jazan Economic City (JEC) are driving investment and innovation. The logistics and industrial real estate market is gaining ground due to the Kingdom's position as the largest e-commerce market in the GCC, supported by high internet access (97 percent), a young and tech-savvy population, and a growing preference for online shopping. Modern commerce and e-commerce are expected to contribute around 80 percent to the retail sector by 2030, fueling strong demand for advanced storage solutions, fulfilment centres near consumers, and efficient last-mile distribution networks, JLL said. The construction boom in Saudi Arabia, aligned with Vision 2030, has injected $850 billion into the construction industry, creating challenges for global supply chains. In response, businesses and investors are adopting proactive strategies such as supply chain diversification, investing in local manufacturing to enhance self-sufficiency, implementing best practices to optimise inventory and minimise lead times. The National Industrial Development and Logistics Programme (NIDLP), one of Vision 2030's core pillars, aims to increase the logistics sector's GDP share from 6 percent to 10 percent by 2030, and localise 70 percent of the supply chain. (Writing by P Deol; Editing by Anoop Menon) (
Zawya
26-06-2025
- Business
- Zawya
Juthor breaks ground on TM6: New tissue manufacturing facility at KAEC to boost industrial capacity
TM6 will deliver enhanced output and greater efficiency, raising annual capacity to 120,000 tons KAEC, Saudi Arabia – Juthor Paper Manufacturing Co., a subsidiary of Middle East Paper Co. (MEPCO), one of the largest paper manufacturers in the Middle East and North Africa (MENA) region, has broken ground on TM6, its second high-capacity production line for tissue manufacturing at King Abdullah Economic City (KAEC), near Jeddah. The groundbreaking ceremony welcomed distinguished representatives from different government and private entities like MODON and Economic Cities and Special Zones Authority along with the Juthor and MEPCO senior leadership teams. With a total investment of SAR 345 million, TM6 will significantly expand Juthor's manufacturing output, increasing annual capacity to 120,000 tons and operating at a speed of 2,100 meters per minute. TM6 supports Saudi Arabia's Vision 2030 by advancing local manufacturing, reducing reliance on imports, creating skilled jobs, and adhering to world-class environmental standards. Andritz AG, an Austria-based international technology group the provides advanced plants, equipment, services, and digital solutions, will manufacture, supply, and install the facility, over a 24-month period. Commenting on the launch, Mr. Musab Al-Muhaidib, Chairman of the Board at MEPCO Group, said: 'The launch of TM6 is a testament to our unwavering belief in Saudi Arabia's industrial future. As we align with Vision 2030, this expansion strengthens our role in enabling local manufacturing and advancing the Kingdom's self-sufficiency in the tissue sector.' The facility will utilize cutting-edge technology and sustainable manufacturing methods to align with MEPCO's environmental goals, including efficient resource use and minimizing carbon emissions. Eng. Faisal Haddawi, Group President at MEPCO Group, said: 'At MEPCO Group, we do not simply build capacity — we build value, resilience, and trust. TM6 will accelerate our strategy for sustainable growth while deepening our contribution to the Saudi economy and regional markets.' Juthor remains committed to continuous investment in manufacturing innovation to meet the growing demand for high-quality tissue paper products in the Kingdom and the wider MENA region. About Juthor Paper Manufacturing Co. Juthor Paper Manufacturing Co. is a Saudi-based tissue paper manufacturer and a subsidiary of MEPCO Group. Established to meet the Kingdom's rising demand for hygiene and paper products, Juthor delivers high-quality, environmentally responsible solutions to regional and international markets. Its operations reflect MEPCO's broader vision of industrial leadership, innovation, and sustainability. Media contacts: Abdulaziz Al-Jahdali abdulaziz.j@
Trade Arabia
18-05-2025
- Automotive
- Trade Arabia
Hyundai Motor Manufacturing Middle East breaks ground for Saudi plant
Hyundai Motor Manufacturing Middle East (HMMME), a joint venture between the Public Investment Fund (PIF) and Hyundai Motor Company, held its groundbreaking ceremony for Hyundai's first manufacturing plant in the Middle East at the King Salman Automotive Cluster within King Abdullah Economic City (KAEC). The event marks a significant milestone in the development of Saudi Arabia's automotive industry, said a Saudi Press Agency report. PIF holds a 70% stake in HMMME, with Hyundai owning the remaining 30%. The facility is expected to produce its first vehicle by the fourth quarter of 2026 and aims for an annual output of 50,000 vehicles. The production will include both internal combustion engine (ICE) vehicles and electric vehicles (EVs). Deputy Governor and Head of MENA Investments at PIF Yazeed Alhumied said: 'This groundbreaking is a significant milestone for PIF as it further strengthens the automotive industry in Saudi Arabia. PIF will continue to enable and accelerate the growth of Saudi Arabia's automotive ecosystem through partnerships. This joint venture underscores PIF's commitment to building local capabilities, attracting cutting-edge technology, and creating highly skilled jobs in Saudi Arabia's automotive and mobility sector.' Vice Chair of Hyundai Motor Group Jaehoon Chang said: 'Today's groundbreaking marks the beginning of a new chapter for both the Kingdom of Saudi Arabia and Hyundai Motor Company, as we lay the foundation for a new era of future mobility and technological innovation. Through our joint venture, we hope to contribute to the development of talent in the region with advanced skills and capabilities under Saudi Vision 2030.' HMMME aims to establish a strong foundation for automotive manufacturing in Saudi Arabia. Leveraging local talent, the facility will create thousands of jobs while promoting knowledge transfer and skills development. The localization of Hyundai vehicles is set to accelerate the growth of the Kingdom's automotive and mobility ecosystem, advancing its industrial future. This partnership is part of a broader series of PIF initiatives positioning Saudi Arabia as a global automotive hub. Together, these efforts are transforming the sector, enhancing domestic manufacturing capabilities, and strengthening infrastructure and supply chains, the report said.
ArabGT
18-05-2025
- Automotive
- ArabGT
Hyundai's New Plant Marks the Birth of Saudi Car Manufacturing
A major milestone was marked at King Salman Industrial City, nestled within King Abdullah Economic City (KAEC), as high-level dignitaries convened for the official launch of Hyundai's cutting-edge manufacturing facility in Saudi Arabia—set to roll out Korean vehicles directly from Middle Eastern soil. This new facility, known as Hyundai Motor Manufacturing Middle East (HMMME), is poised to shift the regional automotive paradigm. With an ambitious output target of 50,000 vehicles annually, it represents not just another plant, but the very first full-scale production facility—not merely an assembly site—in the Middle East. Hyundai plans to debut its first locally manufactured vehicle in the final quarter of 2026, offering both traditional and electric drivetrains. A Strategic Leap Toward Vision 2030 • Empowering local industry: The project is a joint endeavor, with the Saudi Public Investment Fund holding a 70% stake and Hyundai owning the remaining 30%. This structure underlines the Kingdom's intent to localize manufacturing, boost national employment, and accelerate its Vision 2030 objectives. • Flexible, future-forward production: By integrating both internal combustion and electric vehicle lines, the plant will cater to a broader market while aligning with global trends toward cleaner transportation. Integrated for Efficiency Strategically situated within the King Salman Automotive Complex, the factory benefits from a robust support ecosystem—including logistics hubs and parts suppliers—cutting down delivery times and optimizing operational costs across the Gulf. Key Metrics That Matter • 50,000 units per year: This output capacity positions Hyundai's Saudi plant as a leading auto producer in the Arab world. • 2026 launch goal: The rollout of the inaugural model, especially with advanced infrastructure tailored for EV production, is set for late 2026. • Job creation on a national scale: Thousands of new roles—from engineering to admin—will emerge, fostering technical expertise and advancing Saudi Arabia's industrial capabilities. Why This Factory Changes the Game for Arab Consumers • Cost efficiency: Lower shipping and customs fees are likely to bring down prices, particularly for SUVs, hybrids, and EVs, making them more accessible. • Enhanced after-sales support: Local service centers and parts depots will translate into faster maintenance, improved spare parts availability, and greater customer satisfaction. • Growth potential: The facility opens up opportunities for regional suppliers and service providers, strengthening the industrial supply chain and encouraging sustainable investment. Hyundai's newly inaugurated plant in KAEC is more than just a factory—it marks a bold reimagining of how and where vehicles are made in the Arab world. By anchoring production within the region and embracing both gasoline and electric technologies, the Kingdom is positioning itself as a major player in the global automotive arena. Expect the first wave of Hyundai vehicles from the HMMME plant to arrive by late 2026—ushering in what may be the most significant evolution our regional car market has seen in a generation.
Argaam
15-05-2025
- Automotive
- Argaam
Hyundai breaks ground on new factory in King Salman Automotive Cluster
Hyundai Motor Manufacturing Middle East (HMMME) broke ground on its new factory in Saudi Arabia's King Salman Automotive Cluster within King Abdullah Economic City (KAEC). The facility is Hyundai Motor's first manufacturing plant in the Middle East. Production is scheduled to begin in the fourth quarter of 2026, with an annual capacity of up to 50,000 vehicles, including internal combustion engine vehicles and electric vehicles. According to data compiled by Argaam, the Public Investment Fund (PIF) and Hyundai Motor Co. signed a joint venture agreement in October 2023 to establish a highly automated vehicle manufacturing plant in the Kingdom. PIF holds a 70% stake in HMMME, while Hyundai Motor owns the remaining 30%. In November, Emaar The Economic City signed a 20-year land lease agreement with HMMME for a plot in the Industrial Valley's special economic zone. The SAR 175.7 million deal covers the construction and operation of a facility for assembling vehicles and manufacturing auto parts.
