Al-Watania for Industries (WFI) recently signed a joint venture agreement with Mecen IPC from South Korea to establish the first plant in Saudi Arabia that produces polyethylene foam insulation (XLPE) in Dhurma industrial City in the Riyadh region. With an investment of SR35 million ($9.32 million) in the first phase and a production capacity of 2,520 tons per year, this strategic project aims to introduce new options for high-efficiency insulation materials in the Saudi market.
WFI Vice Chairman Fahad bin Sulaiman Al-Rajhi said: “This is the first project in Saudi Arabia to produce cross-linked polyethylene foam (XLPE) and we are pleased to enter this JV project with the South Korean company Mecen IPC, the technical partner in this project, which owns 40 percent. We aim to localize the technology of manufacturing this product in line with Saudi Arabia’s Vision 2030.”
Executive Director of Mecen IPC Jae Chul Park said: “Saudi Arabia is one of the biggest markets for insulation material in the world and we see a great potential to expand our business to the entire MENA region.
Strategically Saudi Arabia is the best place to start as it is the leading country in the MENA region.”
WFI CEO Ibrahim I. Behairi said: “The project is expected to be operational in the first quarter of 2020.”
Al-Rajhi added: “We are proud of our new project and are looking forward to studying other investment opportunities that will hopefully contribute to Saudization and localization and benefit our country.”
