Minister of Commerce and Industry opened the first factory for "Isuzu" in Dammam 2nd. Industrial City
Saudi Arabia succeeds in manufacturing the first truck with the Japanese
The Minister of Commerce and Industry and Chairman Board of Directors for Saudi Industrial Property Authority - Modon Dr. Tawfig Alrabiah Wednesday inaugurated in Dammam 2nd. Industrial City, the first industrial project for "Isuzu" Motors in the Kingdom within the region. On this occasion, H.E. Dr. Alrabiah drove the first truck manufactured locally in collaboration with the Japanese international company. The ceremony was attended by a large number of officials, industrialists, businessmen and company agents.
H.E. Dr. Tawfig Alrabiah viewed the production lines for Isuzu, and expressed his happiness on excellence of the project and product quality. It is noteworthy that the factory building was carried out by "Modon" and according to the specifications and standards of Isuzu, and "Modon" seeks to build hundreds of ready built factories for serious investors in the industrial cities according to the approved specifications and standards.
Isuzu President Susumo Hosoi honors Commerce and Industry Minister Tawfiq Alrabiah
at the unveiling of the first “Made in Saudi Arabia” truck in Dammam.
In a statement by the Saudi Industrial Property Authority “Modon”, global car manufacturing companies are entering the domestic market and the presence of the auto industry in the Kingdom will create new opportunities for other industries and works on technology transfer and the development of the production sector. It will also help in providing trained manpower for factories and cut costs and stimulate foreign investors to enter the Saudi market.
The statement from "Modon" added that the industrial project will represent a quantum and a giant leap for industry in Saudi Arabia, noting that it had been agreed to allocate the first industrial project for "Isuzu" in the region on a land on an area estimated at 120 thousand m² in Dammam 2nd. Industrial City to establish an integrated factory for the production of cars and light and medium trucks. It is expected that the annual production capacity will be 25,000 trucks a year by 2017, and the volume of exports will reach 40% of the total production.
"Modon" considers that this project is of the most important projects in the industrial cities that has sought to nationalize international technology, especially nationalization of auto industry through one of the largest specialized Japanese companies. These value-added projects should recur on the industrial sector in the Kingdom to open areas of employment and investment opportunities in complementary industries.
Meanwhile, the Minister of Commerce and Industry, Dr. Tawfig Alrabiah during his speech clarified that following on the strategic direction of the Government of the Custodian of the Two Holy Mosques goal of diversifying sources of income and that the industry is a strategic choice for sustainable development and to create job opportunities for citizens, both males and females, in the Kingdom has by the grace of God attracted specialized global industrial projects in the industrial cities across the Kingdom and created a strong industrial base which is contributing to raising the economic growth of the Kingdom in addition to benefiting from the expertise of these foreign industrial projects for nationalization within the Kingdom.
Dr. Tawfig Alrabiah drives the first Isuzu truck 'Made in Saudi Arabia'
Dr. Alrabiah added "The reality of trade and investment relations between Saudi Arabia and Japan is linked solidly, and a strong and distinctive friendship based on mutual respect and common interests between the two countries. These relations extend from more than 55 years. Japan is the second largest global economy, and ranked second trade partner of the Kingdom of Saudi Arabia and one of the largest investors in the Kingdom".
Dr. Alrabiah clarified that Isuzu has achieved success story within a short distinctive period, since it was agreed two years ago to establish an integrated factory for the production of cars and light, medium and heavy trucks, and "Modon" allocated a land on an area of 120 thousand square meters in Dammam 2nd. Industrial City to establish this project.
Adding, "I am pleased that the plant will work in several stages for the development of production capacity to reach 25 thousand trucks annually of various types in 2017, and will exported 9800 trucks at the end of the fourth quarter in 2017 and export 40 percent of production to global markets, God willing."
He added that this comes by following on the strategic direction of the Government of the Custodian of the Two Holy Mosques goal of diversifying sources of income and that the industry is a strategic choice for sustainable development and creating job opportunities for citizens, both males and females, in the Kingdom has by the grace of God attracted specialized global industrial projects in the industrial cities across the Kingdom and created a strong industrial base which is contributing to raising the economic growth of the Kingdom in addition to benefiting from the expertise of these foreign industrial projects for nationalization within the Kingdom.
For his part, Engr. Saleh Bin Ibrahim Al-Rasheed, Acting Director General of "Modon" during his speech confirmed that Saudi Arabia still opens its arms to attract more local and foreign investments for industrial investment in the Saudi market, and take advantage of incentives and facilities, which are characterized by many countries, and it aims to build a strong national industry stimulating to be a strategic option for the Kingdom.
Engr. Al-Rasheed suggested that "MODON" is constantly working to support strategic industries that develop and manufacture basic products those were not manufactured in the Kingdom, and the investment in the automotive industry in the Kingdom is no longer a dream within modern economic orientation.
He added that "Modon" is striving to overcome all obstacles to any serious industrial investor who wants to set up a value-added factory in the industrial cities supervised by "Modon", and it is no secret that what the establishment of a factory provides is the power of the general economy of the Kingdom and this trend adds to multiple sources of income and reduce dependence on limited sources and opportunities for young people to accomplish creativity, work and learn from the wealth of career opportunities both direct and indirect, noting that "Modon" oversees 29 industrial cities spread in all regions of the Kingdom with more than 4500 factories.
Engr. Al-Rasheed further added "Saudi Arabia is still in need of automotive industries, and continues to import large numbers of them annually, making" Modon" seeking to attract international companies for cars including Isuzu, which started its production since yesterday as the first plant in the region. We aim to localize industries and make it our strategic choice”.
Adding that the presence of other factories for automobiles in the industrial cities will need to determine the time of starting production during the coming period, stressing that it is the fruitful efforts of H.E. the Minister of Commerce and Industry and “Modon” in order to assure Saudi Arabia a leading position in the industrial field amongst countries in the world.
Engr. Al-Rasheed also said that the auto industry in Saudi Arabia requires materials to meet its needs such as factories that specialize in the cars bodies, batteries and some other parts needed by this industry, and will thus reach integration in the automotive industry during the coming period.
He further said that the auto industry in the Kingdom will support the growth of the national industry, and will have a positive impact on the Saudi economy, stressing that it will continue its efforts to increase the area of industrial cities and industrial promotion.
Meanwhile, Engr. Azzam Shalabi, President of the National Industrial Clusters Development Program, in his speech during the ceremony enlightened the prominent role of the industrial clusters in attracting foreign investment and in the development of car assembling industry and their parts, for passenger cars, trucks and buses, which include the areas of research and development, design, and manufacture parts and devices, sub-assembly, and assembly of complete vehicles, and logistics for cars, trucks, and buses, stressing that the program aims to encourage and support more Saudi and foreign investment in the sector, and strengthening the role of the kingdom to become a major element in the development and manufacturing of vehicles, and reduce the volume of imports and increase the size of exports, and create sustainable jobs, and contribute to the enrichment of the national economy.
During the ceremony Isuzu President Susumo Hosoi said that the company intends to increase its production capacity at the plant to reach 25 thousand light trucks in 2017, in conformity with the standards and specifications and appropriate atmosphere in the Gulf region, pointing out that the increase in production capacity of the factory lies in the attraction of a large number of young Saudis who will be trained in specialized institutes, including Saudi-Japanese Institute and some institutions specialized in the automotive industry, in addition to a number of them on scholarship to Japan.
He hinted that the company would export 40 per cent of its production to the Gulf states after covering market needs of Saudi Arabia, which he described as an encouraging market for all global industrial companies, adding that the company is producing 600 thousand cars annually exported to more than 100 countries in the world, the Saudi share is more than10 per cent. Pointing out that the Saudi market needs more than 50 thousand trucks annually which can be increased as needed, and the diversity of investment and the need for Japanese Isuzu cars and their presence in the Saudi market in order to raise the productivity of the company for Isuzu light and medium trucks compete globally on the acquisition as much of the world market share.
Both the officials of the Ministry of Economy, Trade and Industry of Japan, and Deputy General Manager of Isuzu (Satoshi Miyamoto), and the Charge d'affairs Yasunari Morino, deputy chief of mission at the Japanese Embassy in Riyadh thanked and appreciated His Excellency the Minister of Commerce and Industry, Dr. Tawfig Alrabiah and the National Industrial Clusters Development Program for their efforts in facilitating the establishment of the factory in the Kingdom. They also sincerely thanked "Modon", led by its Acting Director General Engr. Saleh Bin Ibrahim Al-Rasheed and projects department managers and business development and all the staff who contributed to the success of the project.
At the end of the ceremony souvenirs between the company and stakeholders were exchanged and the project team had a photo session.
Group photo of the team which contributed in the opening and launch of the car factory in the Kingdom
Meanwhile, the Saudi Industrial Property Authority (MODON) was established in 2001. MODON is responsible for the development of integrated service lands, where MODON has established industrial cities in various regions of the Kingdom and currently oversees 29 existing or underdevelopment cities which include: Riyadh (1st, 2nd & 3rd), Jeddah (1st, 2nd & 3rd), Dammam (1st., 2nd & 3rd), Makkah, Qassim 1st. , Al-Ahsa, Al-Madinah, Al-Kharj, Sudair, Ha'il, Tabuk, Ar'ar, Al-Jouf, Assir, Jazan, Najran, Al-Baha, Qassim 2nd,Taif, Al-Zulfi, Shaqraa and Hafr Al-Batin. There are cities under planning and designing stages as well, which include Salwa, Dhuba, Al-Baha 2nd, Military industries and Jeddah 4th. It is targeted that during the coming five years, the number of industrial cities shall reach 40 industrial cities with developed industrial lands of not less than 160 million square meters. To apply for land or to identify opportunities in any of industrial, residential, commercial and service sectors, kindly visit MODON website or follow us on Twitter at Modon_Ksa.
It is worth mentioning that the state has provided incentives and facilities to support the industrial sector with the support of the Government of the Custodian of the Two Holy Mosques which has played its role in the balanced development and has attracted support projects. This is an opportunity for investors to establish projects for logistics support for the industry. Investors can obtain government loans from the Industrial Development Fund and the continuation of the symbolic industrial land lease and reduced fees, and support to investors through the Human Resources Development Fund.
The incentives in the industrial cities are unique, since the investor can rent industrial land for extended periods from (1) Saudi Riyal per square meter per year, and have access to financial facilities and government loans of up to 75% and avail the customs exemption for machinery and equipment and raw materials used in industry. The land is handed over in a short period of time from the date of submitting the application electronically through MODON website.