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UAE-based RAK Ceramics will significantly reduce transportation costs and energy prices with the opening of its first manufacturing facility in Saudi Arabia, its group CEO Abdallah Massaad told Argaam in an interview.
“Saudi Arabia is our biggest market in the region. With the opening of our first manufacturing facility in the Kingdom, we will be significantly reducing our transportation costs and energy prices used in the process,” Massaad said.
“Also the raw materials available in Saudi Arabia are very attractive in ceramics manufacturing,” he added.
Read: RAK Ceramics to expand in Saudi Arabia with new facility
The Abu Dhabi-listed company has already received approvals for the facility and is in the process of announcing further details. “We will soon identify the location and follow it with the announcement,” Massaad said.
He also indicated that the new Saudi manufacturing facility is a part of the ceramics manufacturer’s growth strategy for 2019.
“Saudi Arabia is our second biggest market after the UAE; it’s been a good one for us historically as well. In 2018, we had consolidated two joint venture distribution companies and merged them into one in the Kingdom,” Massaad further noted.
The company will adopt a cautious and optimistic outlook for 2019, according to Massaad. “2019 will be a focus year for us. We will be concentrating on our market in the UAE and India, grow our European distribution network, and focus on rebranding and building our market share in Saudi Arabia,” Massaad concluded.
Write to Paromita Dey at paromita.d@argaamplus.com
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