Carrier to build factory and R&D facility in Saudi Arabia
20th February 2024
SAUDI ARABIA: Carrier is to build an advanced manufacturing and R&D facility in Saudi Arabia in a partnership with Alat, a new Riyadh-based public investment fund company.
The partners intend to break ground later this year on the facility which will produce a range HVAC products including VRF, air-cooled chillers, AHUs and rooftop units for MENA markets.
The size of the facility and the investment amount has not been revealed but the project is expected to create around 5,000 local jobs.
Alat was established on February 1, by Prince Mohammed bin Salman Abdulaziz Al Saud, crown prince and prime minister of Saudi Arabia.
A statement from the new company says that the agreement “will leverage Alat’s financial strengths and Carrier’s technology and manufacturing capabilities” to develop made-in-Saudi-Arabia intelligent climate solutions. It also reveals that this will mark the first phase of the partnership with Alat.
These offerings will address the continued growth of the HVAC industry in the Middle East and North Africa region, which is expected to become a US$10bn market by 2030 and a US$334bn market globally by 2030.
The partnership will serve customers in the kingdom, its projects as well as ensure broader regional, and even global, distribution. One of the Saudi Arabian projects mentioned is NEOM, the huge, 26,500km² urban development planned for completion in 2039 in the kingdom’s northwestern Tabuk Province.
“We see Carrier as a long-term partner in our smart buildings line of business, which is solely focused on solutions that integrate innovation, sustainability, and efficiency for buildings,” commented Alat CEO Amit Midha.
Carrier has been actively engaged in the Saudi market since 1987, through a successful joint venture with EA Juffali and Brothers. “Carrier remains committed to this longstanding and valuable partnership,” said Carrier chairman and CEO David Gitlin, adding that the company saw significant growth opportunities in the region.
“This partnership is the start of a longer-term partnership to co-develop innovative solutions that will redefine intelligent climate and energy solutions for the Middle East and beyond.”
With access to over two billion consumers, Carrier sees Saudi Arabia’s location as not only at the centre of the Gulf, but also at the heart of major trade routes crossing Europe, the Middle East and Asia. The country is also forging a new economic partnership with the recently formed India Middle East Europe Corridor (IMEC).
While the number of factories in Saudi Arabia has increased by 50% in the last year, with over 10,000 industrial facilities, the Kingdom expects to host 32,000 manufacturing facilities by 2035.
