RED SEA Housing Services Company (RSH) has announced it plans to build its fourth manufacturing unit in King Abdullah Economic City (KAEC).

It said the proposed 193,000 sq m facility will raise its overall production capacity by 35 per cent, reaching 1 million sq m annually.

Mohammed Othman Mallawi, the company’s investor relations manager, said the new facility would cost SR85 million ($22.6 million) to construct and the first construction phase would begin in Q4 of this year with completion set for Q2 2014.

The new plant will be financed through Red Sea Housing’s internal cash flow in addition to credit facility lines and bank loans arranged locally.

“Our investment into the new facility is based on our underlining goal of contributing to projects in remote locations and in the prefabricated housing sector of the kingdom,” said Mallawi. “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 and gas and mining projects being undertaken in the kingdom, in addition to several economic and industrial cities being developed and which require substantial manpower.” 

Red Sea Housing 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, one located in Jubail in Saudi Arabia, the second in Jebel Ali in Dubai and the third in Accra in Ghana. With an integrated portfolio of projects in 62 countries, the company also has subsidiaries in Ghana, Algeria, Qatar, Nigeria, Papua New Guinea and Libya.