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SIIMCO PLANS $58m INVESTMENT

SIIMCO executives and Yanbu officials at the signing ceremony.

St-Gobain JV to set up stone wool plant in Saudi

Kuwait, July 8, 2013

Saudi International Insulation Manufacturing Company (SIIMCO), a joint venture between Kuwait-based Alghanim Industries and Saint-Gobain, has announced plans to set up its new stone wool factory at a cost of KD16.75 million ($58.4 million).

As a first step, SIIMCO signed an agreement with the Yanbu Royal Commission to lease a 65,000 sq m site for the development of the new plant.

The lease is for a period of 30 years and will allow the development of a new plant utilising Saint-Gobain’s proprietary technology to produce stone wool, which is widely used as insulation in many parts of the construction industry, said a statement from the company.

The agreement follows a comprehensive review of the environmental impact and approval for plant layouts, building structure and utilities from the Yanbu local authorities, it stated.   

Dr Alaa Nassif, the executive president for Royal Commission and Mohammad Al-Soaib, the general manager of the First Saudi Insulation Manufacturing Company, a wholly-owned Alghanim Industries subsidiary, signed the agreement at a special ceremony held in Yanbu.

The construction of the new hitech plant is expected to begin in August and is due to be operational by early next year.

When completed it will employ around 200 people and have the annual capacity to produce 60,000MT of stone-wool, thermal and acoustical insulation materials in the form of slabs, rolls, stitched mats, and preformed pipe insulation annually, said a top official.

“Our joint venture investment at Yanbu will supply local and regional industrial and building areas with a reliable source of high quality insulation, which is both environmentally friendly and will assist in improving the fire safety of buildings," remarked Omar Alghanim, the chief executive of Alghanim Industries."

It will serve the technical and building insulation market segments in Saudi Arabia and other regional markets in the GCC, Egypt, Iraq and Levant," he stated.
 
“Saint-Gobain is one of the world’s leading construction industry suppliers and we have worked together very successfully in the past. This is the second joint venture we have shared together in this sector, following our very successful investment in Turkey for the production of similar products," said the official

"I look forward to continuing to develop and strengthen our relationship as we proceed with the plant at Yanbu," he added.-TradeArabia News Service
 




Tags: Saudi | Kuwait | Saint-Gobain |

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