Sika commissions new factory in Saudi Arabia

Sika has expanded its presence in Saudi Arabia by opening a new production plant for concrete admixtures.

Located in Dammam, the new factory enables Sika not only to increase its production capacity but also, in particular, to optimise its logistics and hence its cost structure.

Up to now, Sika supplied its customers in Riyadh as well as on the east coast with concrete admixtures from the plant in Rabigh, which is located 1,500 and 1,100km away from Dammam and Riyadh respectively. The new production facility in Dammam will thus greatly reduce transport distances. It is also ideally positioned to potentially supply customers in neighbouring markets around the Persian Gulf.

Ivo Schädler, regional manager EMEA, said: “Producing locally in Dammam brings us closer to our customers on the east coast of Saudi Arabia and opens up further growth potential. At the same time, the optimized supply chain will help strengthen our competitiveness in the market.”

With its Vision 2030 and its National Transformation Program, Saudi Arabia wants to reduce its dependence on crude oil and diversify its economy. A range of mega-projects involving huge infrastructure investments will push up demand in the construction sector.