Caparo Middle East, a leading manufacturer and distributor of industrial and electrical products, has announced the opening of its fully-integrated manufacturing plant in Dammam in the Eastern Province of Saudi Arabia.
A 30,000-sq-ft facility, the Caparo Tabalsa Arabia Factory Company is being set up as a joint venture between Caparo Middle East and a reputed Saudi Arabian investor Engineer Sinan Ali Ahmed Bukamseen at an investment of SAR25 million ($6.6 million). The JV is expected to create about a hundred jobs, of which forty have been filled already.
Caparo ME’s specialisations include electrical metallic conduits and fittings complying with American UL standards.
Located in the 2nd Industrial City, Dammam, the factory will come up on a 50,000 square ft plot of land that will cater to the growing needs for these products in the Middle East and Africa regions.
At full capacity, the factory will produce about half a million electrical conduits and related fittings per month, it stated.
According to industry experts, increased investment in infrastructure, utility, housing, aviation, tourism and construction is accelerating the growth in electrical conduits and fittings industry which is set to grow two-fold to $19.9 billion in 2032 from $10 billion last year.
Currently Caparo ME distributes these electrical conduit products by importing them from factories in managed facilities from China and India.
The new manufacturing facility in Dammam will help reduce imports and assist Saudi Arabia to achieve self-sufficiency and become an exporter of industrial and electrical metallic conduits and fittings.
Caparo ME is part of the global association of Caparo businesses founded by the Lord Swraj Paul PC, a global name in business leadership.
Speaking at the inauguration, Lord Paul said: "This new industrial venture reflects Caparo’s long-term commitment to the Saudi Arabian economy, as it evolves and diversifies to become a major global economic powerhouse. We are very happy and proud to be able to inaugurate this investment at this time."
Headquartered in London, the Caparo group of associated businesses operates across the world, predominantly in manufacturing, distribution and sales at over forty locations.
According to Paul, this manufacturing plant will play a vital role not only in eliminating imports of industrial and electrical metallic conduits and fittings complying with American UL standards, but also help Saudi Arabia to export these products to the GCC countries, Middle East and African markets.
In this way, we are also aligning ourselves with the economic diversification plan under the Saudi Arabian Vision 2030.
A first step by Caparo ME in Saudi Arabia, this expansion will contribute to the Saudi economy and increase prospects for further investments by Caparo ME in the future.
The new plant will help Caparo ME revenues grow through manufacturing in KSA rather than importing product, not only increasing market share in KSA, but also in the GCC, the wider Middle East and Africa, he added.
Anjli Paul, the Director of Caparo ME, said with new JV manufacturing plant launch, the group will become a dominant force to be reckoned with in the region.
"Aligning with the vision of the Saudi government, we will promote local manufacturing and local human talent, and look forward to increasing Caparo’s business presence in KSA," she stated.
Caparo ME has been operating independently from Dubai and serving the GCC market since 2005.
Caparo ME’s product lines consist of electrical conduits, fittings and cable connectors under its Caparo and Simplex Cables brands, and Caparo Energy industrial batteries. This is the first venture into KSA with investment in manufacturing, she added.-TradeArabia News Service
