$93m aluminium plant in Saudi Arabia agreed

The Saudi Arabian firm Construction Products Holding Company (CPC) and a major German aluminium manufacturer have teamed up to build a US $93 million (SAR350 million) extrusion plant in Jeddah. A memorandum of understanding was signed yesterday by Mu'taz Sawwaf, chief executive of CPC, and Theodoros Tzortzis, chairman of Herman Gutmann Werke AG, to develop a new aluminium extrusion facility, as well as a composite panel production line. CPC will carry a 65% stake in the project, while the remaining 35% will be controlled by Herman Gutmann, which has more than 70 years experience in the industry, who will also provide technical support. Faysal Alaquil, director of business development and administration affairs at CPC, said: "Initially, the facility will carry an annual production capacity of about 22,000 tons of extruded aluminium, including anodizing and coating facilities, as well as an output of some 1.5 million square metres of aluminium composite panel." Alaquil also said that half of the facility's total production will be earmarked for export with the other half going to supply local construction projects. The plant will be built at Bahrah, near Jeddah and is due to be ready by the end of the year.