August 04, 2013: Red Sea Housing Services Company (RSH) has announced its plans to build its fourth manufacturing facility in King Abdullah Economic City (KAEC) as part of its ongoing expansion strategy in Saudi Arabia. The 193,000 sqm facility is set to increase the company's overall production capacity by 35 per cent, to reach a total of 1 million sqm annually.
Mohammed Othman Mallawi, Investor Relations Manager, Red Sea Housing Services Company, said: “We look forward to commencing the construction of our SAR 85 million facility in KAEC, Rabigh, following the official approval we received from the Economic Cities Authority (ECA). The first phase of construction will commence in Q4 2013 and the facility is expected to be operational in the second quarter of 2014.”
The new plant will be financed through Red Sea Housing's internal cash flow, in addition to credit facility lines and bank loans that will be arranged locally.
“Our investment into the new facility is based on our underlining goal of contributing to the projects in remote locations and the prefabricated housing sector in the Kingdom,” added Mallawi. “We look forward to achieving our objectives with the drive of our highly efficient and experienced employees, administrators, technicians and workers. 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 & gas and mining projects being undertaken in the Kingdom, in addition to the several Economic and Industrial Cities being developed, which require substantial manpower.”