US-based Johnson Controls has joined hands with Saudi Arabia’s Al Salem Group to set up a manufacturing facility and training centre at King Abdullah Economic City (KAEC)’s Industrial Valley in the kingdom’s Western Province.

The foundation stone for the JV called Al Salem Johnson Controls was laid recently and should become operational in 2017. The company will be based on a plot of 203,783 sq m and serve as the first industrial company offering integrated heating, ventilation and air-conditioning (HVAC) solutions at KAEC. 

Fahd Al Rasheed, group CEO and managing director of KAEC, said: “We are delighted to welcome Al Salem Johnson Controls which joins other leading international companies that have chosen KAEC’s Industrial Valley as their base for regional expansion. The presence of ASJC further diversifies the types of manufacturing operations in the Industrial Valley and adds significant value to both the city’s and the kingdom’s economic progress and development.

“We continue to be very successful in attracting leading national and international companies to invest in KAEC and the Industrial Valley, where we are creating clusters of manufacturing and other business operations that will contribute to economic diversification.”

Sheikh Saleh Binladen, executive board member of Al Salem Johnson Controls, remarked: “Our partnership with Johnson Controls through our first factory in Jeddah has given us a positive footprint in the industry throughout the kingdom, and our second new factory in King Abdullah Economic City is proof of our continuous growth and shared vision of engaging in the economic, social and urban development of the kingdom.”

Opportunities

Rayan Qutub, CEO of the Industrial Valley in KAEC, said, “The immense investment opportunities available at Industrial Valley, which is directly connected to King Abdullah Port, position it as the new manufacturing and logistics hub and as the gateway to Saudi Arabia and the region, enabling investors to reach 250 million consumers in the Arab world in addition to East Africa.

“The Industrial Valley extends over an area of 55 million sq m, which constitutes nearly one-third of the city’s total land area, and offers investors unique benefits and unmatched advantages with world-class infrastructure. In addition, the Industrial Valley includes ‘The Village,’ which is specially designed to provide housing solutions for factory workers and supervisors,” said Qutub.

“To date, we have signed up with more than 93 national and global companies, of which eight are already in operation and 23 are under construction. They focus on the six industrial clusters: FMCG (fast moving consumer goods)/foods, pharmaceuticals, logistics, plastics, building materials and the automotive sector.

“The Industrial Valley continues to cater to rapidly increasing demand on lease and freehold industrial lands in the second and third phase of development at a speed beyond expectations. Currently, infrastructure is being developed for an area that exceeds 25 million sq m and the valley continues to be the first choice for new local and international companies.”

Mohanad Alshaikh, CEO of Al Salem Johnson Controls, said the new factory when fully operational will facilitate 1,000 jobs, creating a growth-oriented environment that is “more efficient, more intelligent and more connected for our customers.”

The facility will utilise Johnson Controls’ manufacturing and quality control systems, and has been designed to produce integrated solutions that increase energy efficiency and operational savings.