Sika has expanded its presence in Saudi Arabia by opening a new production plant for concrete admixtures. Located in Dammam on the east coast of the country, the new factory enables Sika not only to increase its production capacity but also, in particular, to optimize its logistics and hence its cost structure.
Up to now, Sika supplied its customers in the Saudi capital Riyadh as well as on the east coast with concrete admixtures from the plant in Rabigh, which is located 1,500 and 1,100 kilometers away from Dammam and Riyadh respectively. The new production facility in Dammam will thus greatly reduce transport distances. It is also ideally positioned to potentially supply customers in neighboring markets around the Persian Gulf.
"Producing locally in Dammam brings us closer to our customers on the east coast of Saudi Arabia and opens up further growth potential. At the same time, the optimized supply chain will help strengthen our competitiveness in the market." Ivo Schädler, Regional Manager EMEA
DIVERSIFICATION OF THE ECONOMY DRIVING CONSTRUCTION DEMAND
With its Vision 2030 and its National Transformation Program, Saudi Arabia wants to reduce its dependence on crude oil and diversify its economy. A range of mega-projects involving huge infrastructure investments will push up demand in the construction sector. The equivalent of CHF 500 billion is to be invested in the Neom project alone. This entails the construction of a new city and the world’s most modern technology park.