Alian Industrial Company, which is wholly owned by Al Kathiri Holding Company, has received the initial approval from Saudi Industrial Development Fund (SIDF) to finance the establishment of a new plant.
The new factory will use Italian technology for the production of reinforced polystyrene sheets reinforced with iron and concrete, according to Al Kathiri’s filing to the Saudi Stock Exchange (Tadawul) on Tuesday.
The loan, which will be repaid in 12 semi-annual installments, valued at SAR 23.2 million.
The project will be 75% financed through the industrial fund, and 25% through self-financing from the company.
“The technology of producing the three-dimensional concrete panels is very developed and sophisticated. Also, it is an alternative for traditional construction methods with a cost and time savings of 30% from the traditional way and process of construction,” the statement highlighted.
Building the factory comes in response to the Ministry of Housing and the National Industrial Development and Logistics Program, which aims to provide the best housing solutions for home ownership and reduce the cost of construction.
Covering an area of 12,308 square metres, the factory is expected to start production by the first half of 2020.