Alwasail Industrial board approves setting up SAR 5 mln plant in Jazan

Alwasail Industrial Co.'s board of directors approved today, Jan. 8, the establishment of a new plant in Jazan's Modon Industrial City, according to a statement to Tadawul.

The cost of the new plant is estimated at SAR 5 million, said the company, adding that it expects construction works to begin in Q2 2023.

The new plant is aimed to reduce shipping and distribution costs, besides increasing Alwasail Industrial’s market share. This is in addition to the possibility of supplying Yemen with the required products directly from there, in order to reduce the cost, said the statement.

The company also indicated that the project will be self-financed, expecting it to be completed within one year as of the contract award date. Commercial production at the new plant is forecast to be in Q2 2024.