Saudi to sign deal with international firm to set up tire factory: Minister

Bandar AlKhorayef, Minister of Industry and Mineral Resources

The Public Investment Fund (PIF) will sign an agreement with one of the largest international tire companies to establish a factory in Saudi Arabia, Bandar AlKhorayef, Minister of Industry and Mineral Resources, told Asharq News on the sidelines of the Future Investment Initiative (FII).

The move falls within the framework of achieving an integrated supply chain for the automotive industry in the Kingdom.

In less than a year after the launch of the National Automotive Industry Strategy, the Kingdom announced three factories with Lucid, Ceer, and Hyundai, the minister said. He indicated that these factories aim to increase the production capacity to 300,000 vehicles by 2030, representing 50% of the local market needs.

Regarding the Saudi fertilizer industry, AlKhorayef said the water situation does not allow the Kingdom to be an agricultural country, hence, it decided to focus on other aspects of the food supply chain like fertilizers, especially phosphate.

The country aims to expand Saudi Arabian Mining Co.'s (Maaden) fertilizers production capacity to nine million tons annually, from the current six million tons, making Maaden the third largest fertilizer company in the world

The Kingdom's pharmaceutical industry exports reached SAR 1.5 billion, and they are expected to increase, as two pharmaceutical factories recently opened in Sudair, in addition to a medical devices plant that will produce the first locally manufactured electrocardiogram device.

Further, the minister said the renewable energy sector targets to reach 70% local content from the relevant products, such as solar panels and tires.

The ministry seeks to develop the grade of aluminum to be suitable for use in the aircraft industry, AlKhorayef noted.