A PLANT to assemble Volvo and Reno trucks will be set up at King Abdullah Economic City (KAEC)’s Industrial Valley Phase 2, it was announced recently following an agreement signed between Zahid Tractor and Heavy Machinery for the purchase of land on which the facility will stand.

The area of the plot is 60,000 sq m and some 4,000 trucks per year are to be produced at the facility, providing jobs for 400 staff. The new plant will be the latest of its kind in the Middle East and KAEC hailed the move to set up the plant on its premises.

“The new trucks assembly plant, which will be constructed by the Zahid Group, is considered a major milestone in the growth of King Abdullah Economic City” said Fahd Al-Rasheed, managing director and CEO of KAEC.

“The choice reflects the numerous advantages that KAEC offers to local and global companies which create a unique atmosphere for investments. These advantages include world class infrastructure, clear and business-encouraging regulations and hassle-free processes, ease of issuing permits and licences and the possibility of providing qualified manpower through training centres for Saudi talents.

“The availability of housing solutions within the vicinity of the Industrial Valley, and the direct link with King Abdullah Port makes the valley a global logistical hub and an access point to reach about 250 million consumers in the Mena region, not to mention the availability of Haramain Railway station in KAEC and the future land bridge,” he added.

Amr Khashoggi, VP Corporate Affairs of Zahid Group, said: “Our investment in the Industrial Valley is one of the Zahid Group’s most important expansion stages and will provide a quantum leap for Saudi Arabia’s non-oil economy.

“The factory will produce Volvo trucks which are world famous for strength, durability and safety, and which are sold and serviced in more than 130 countries, making Volvo Truck Corporation the third largest heavy-duty truck manufacturer in the world in terms of large production capacity compared to its counterparts,” he added.

“In the upcoming period we will be working on finishing the factory designs in order to start construction during the first quarter of 2014,” Khashoggi said.