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Real Estate Mgmt & Dev't
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Reference to the Companys previous announcement, dated 11/09/1433 corresponding to 30/07/2012, in regards to the adoption of the 2020 Growth Strategy, which includes expanding the current business of the Company, RSH announces the receipt of the approval from ECA today 30/08/1434 corresponding to 09/07/2013, to construct its manufacturing facility in King Abdullah Economic City in Rabigh, with an estimated cost of SAR 85 million. The 4th manufacturing facility for RSH will be constructed over an area of 193,000 sqm, and shall increase the overall production capacity for the Company by 35%, to reach a total of 1 million sqm per year. This shall significantly assist in matching the continuous increase in demand for labor accommodations due to the numerous projects being executed in the Oil & Gas and Mining sectors within the Kingdom, in addition to the developments of several Economic and Industrial Cities, which requires a considerable number of manpower. The first phase of the construction process is scheduled to start by the fourth quarter of 2013 and commercial production is expected to commence by the second quarter of 2014. The project will be financed through Red Sea Housing internal Cash Flow, in addition to credit facility lines and banking loans that will be arranged locally. The financial impact of this project is expected by the fourth quarter of 2013. Shall there be any developments in regards to the construction of the manufacturing facility, it will be disclosed in due course. Red Sea Housing Services Company has three manufacturing facilities located in Jubail, Jabel Ali Free Zone in Dubai, and Accra in Ghana.
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