Red Sea Housing to build $22m plant in KAEC
Jeddah, August 4, 2013
Red Sea Housing Services Company (RSH), a modular housing solutions provider, plans to build a $22.65 million prefabricated housing manufacturing facility in King Abdullah Economic City (KAEC).
The 193,000 sq m facility, the company’s fourth manufacturing unit, is set to increase its overall production capacity by 35 per cent, to reach a total of 1 million sq m annually.
Mohammed Othman Mallawi, Investor Relations Manager, Red Sea Housing Services Company, said: “We look forward to commencing the construction of the facility in KAEC, Rabigh, following the official approval we received from the Economic Cities Authority (ECA). The first phase of construction will commence in the fourth quarter of 2013 and the facility is expected to be operational in the second quarter of 2014.”
The new plant will be financed through Red Sea Housing’s internal cash flow, in addition to credit facility lines and bank loans that will be arranged locally.
“Our investment into the new facility is based on our underlining goal of contributing to the projects in remote locations and the prefabricated housing sector in the Kingdom,” added Mallawi.
“We look forward to achieving our objectives with the drive of our highly efficient and experienced employees, administrators, technicians and workers.
“We have adopted an integrated strategy to boost productivity and ultimately address the imminent surge in demand for modular buildings for labour accommodation given the numerous oil & gas and mining projects being undertaken in the Kingdom, in addition to the several Economic and Industrial Cities being developed, which require substantial manpower,” he concluded.
Red Sea Housing Services Company is one of the leading providers of high-profile modular housing solutions for companies involved in oil, gas, and mining excavation activities. The company operates three factories located in Jubail in Saudi Arabia, Jebel Ali in Dubai and Accra in Ghana. – TradeArabia News Service