A major joint venture between the KSB of Germany and the Kingdom’s Abunayyan Groups — KSB Pumps Arabia Ltd. — has unveiled plans to expand its manufacturing facility in Riyadh as the brand celebrates significant growth in local sales.
The announcement came during the visit of German Federal Minister of Economics and Technology Philipp Rosler to the local KSB manufacturing facility here.
Minister Rosler, who toured the KSB manufacturing facilities in the Second Industrial Area of Riyadh, said “KSB Pumps Arabia is the successful model of Saudi-German cooperation.”
The German minister also highlighted the growing relations between Riyadh and Berlin.
He praised the Kingdom for its role in supporting the euro zone with its pledge of $15 billion to the International Monetary Fund (IMF) to help stabilize the global economy.
Rosler was accompanied by a large delegation including Dieter W. Haller, German ambassador.
Khalid A. Abunayyan, president and chief executive officer of Abunayyan Holding Company, made a welcome speech and Robert Aramouni, KSB Pumps Arabia’s CEO conducted a presentation. It gave an overview of the KSB operation with special reference to the world-class KSB pumps.
The presentation was followed by a reception that was attended by a large number of German parliamentarians, senior German officials and industry leaders accompanying Rosler.
Top KSB executives as well as a large number of German and Saudi media personnel were also present.
Referring to KSB Pumps Arabia’s expansion, Aramouni said that “the modernization and expansion would see millions of dollars of investment and would be completed within a year from now.”
The new development, coupled with a number of additional infrastructure changes will allow significant growth in manufacturing capacity, he added.
“We will acquire the adjacent plot of land and start the building work shortly,” he noted.
He said the decision to expand the plant follows record sales across the market as the company continues to increase its sales network.
KSB Pumps Arabia is a highly successful Saudi-German venture, which designs, manufactures, distribute and service pump assemblies and complete pressure booster systems to German quality standards, he added, while predicting a turnover of 55 million euros within a couple of years.
Aramouni pointed out that the pump systems are primarily used in water supply and waste water disposal, fire protection, chillers, drainage and seawater desalination. KSB, on the other hand, is a leading international manufacturer of pumps, valves and related systems based in Frankenthal in Germany.
The KSB Group has a presence on all five continents with its own sale and marketing organizations, manufacturing facilities and service operations.
In 2011, almost 16,000 employees generated sales revenue of more than two billion euros.
Germany, a close ally of Saudi Arabia, has forged closer relations with Riyadh on all fronts.
Saudi Arabia has become Germany’s most important trade partner in the Arab world.
It expects to post 5 percent growth in 2012, followed by another 4.7 percent next year.
In 2011 alone, German exports to Saudi Arabia soared by 18 percent to $9.5 billion.
As members of G20, both countries join hands in reforming the international financial system. Germany and Saudi Arabia also share a vital interest in political and financial stability with common approaches on a host of regional and international issues. Both countries are determined to strengthen their respective knowledge-based economies also, said officials.
