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Al Salem Johnson Controls Breaks Ground for New Factory at King Abdullah Economic City’s Industrial Valley

Al Salem Johnson Controls (ASJC), a joint venture between the Al Salem Group of Companies and Johnson Controls, a global multi industrial company, has laid the foundation stone for their new, state of the art manufacturing facility and training center at King Abdullah Economic City’s Industrial Valley. The manufacturing facility to be built on 203,783 square meters of land is expected to begin its first developmental phase immediately and become fully operational by 2017.

Group Photo (Photo: Business Wire)

Creating more than 2000 jobs, Al Salem Johnson Controls has been serving businesses in the Kingdom for over 25 years through energy efficient HVAC solutions that make it easier for customers to achieve energy and operational savings.

Al Salem Johnson Controls will be the first industrial company that provides integrated HVAC solutions to establish its industrial facility and training center in KAEC to further expand in developing energy efficient products, services and solutions in the Kingdom.

Mr. Fahd Al-Rasheed, Group CEO and Managing Director of KAEC, stated, "We are delighted to welcome Al Salem Johnson Controls to the ranks of the other leading international companies that have chosen KAEC’s Industrial Valley as their base for regional expansion. The presence of ASJC further diversifies the types of manufacturing operations in the Industrial Valley and adds significant value to both the city's and the Kingdom’s economic progress and development.”

He went on to say: “We continue to be very successful in attracting leading national and international companies to invest in KAEC and the Industrial Valley, where they are creating clusters of manufacturing and other business operations that are contributing to the diversification of the Kingdom’s economy."

Sheikh Saleh Binladen, Executive Board Member of Al Salem Johnson Controls, said: “Our continuous partnership with Johnson Controls through our first factory in Jeddah has given us a positive footprint in the industry throughout the Kingdom, and our second new factory in King Abdullah Economic City is proof of our continuous growth and shared vision of engaging in the economic, social and urban development of the Kingdom.”

Claude Allain, Vice President and General Manager, Middle East for Johnson Controls and Executive Board member of Al Salem Johnson Controls, said: “Throughout our long association with the Middle East our focus has always remained on contributing to the growth of the region. This decision to invest in KAEC will bring Johnson Controls’ state of the art manufacturing and HVAC technology to the Kingdom of Saudi Arabia and aid projects in the region through economies of scale and rapid returns on investment.”

Mr. Rayan Qutub, CEO of the Industrial Valley in KAEC, said: “The immense investment opportunities available at Industrial Valley being directly connected to King Abdullah Port, position it as the new manufacturing & logistics Hub, and set it as the gateway to Saudi Arabia and the region, enabling investors to reach 250 million consumers in the Arab world in addition to East Africa”. Mr. Qutub added “Industrial Valley extends over an area of 55 million square meters, which constitutes nearly one-third of the city's total land area of the city offering its investors unique benefits and unmatched advantages with a world class infrastructure. In addition, Industrial Valley includes ‘The Village’, which is specially designed to provide housing solution for factory workers and supervisors.”

He added: “To date we have signed with more than 93 national and global companies of which 8 are already in operation and 23 others are under construction, focusing on the six industrial clusters : FMCG/foods, pharmaceuticals, logistics, plastics, building materials and the automotive sector.”

Qutub concluded: “Industrial Valley continues to endure the rapidly increasing demand on lease and freehold industrial lands in its second and third phase of development at a speed beyond expectations where currently infrastructure is being developed for an area that exceeds 25 million sqm to cope with the increased demand and continue to be the first choice for new local and international companies.”

Speaking about the new factory, Mohanad Alshaikh, CEO of Al Salem Johnson Controls said: “As we continue to evolve as a global multi-industrial company, Al Salem Johnson Controls identifies with the initiatives to diversify the Kingdom’s economy and the establishment of this manufacturing and training facility is an important step in this direction. When fully operational, this new factory will facilitate 1000 employment opportunities, creating a growth oriented environment that’s more efficient, more intelligent and more connected for our customers.”

For several years, the focus at Al Salem Johnson Controls has been to foster future Saudi leaders through various initiatives such as the Young Leader Program (YLP) that aims to attract and recruit fresh Saudi graduates and those with high potential to grow within the organization, providing them with the necessary environment, training and mentoring to become successful leaders of tomorrow.

From YORK®’s high efficient industrial chillers to its commercial and residential heating, ventilation and air conditioning systems, the facility will use Johnson Controls’ globally acclaimed manufacturing and quality control systems, and has been designed to produce integrated solutions that increase energy efficiency and operational savings. The facility will be equipped, staffed and managed according to the highest international standards.

“The Kingdom of Saudi Arabia offers one of the most vibrant and promising economies in the region and our focus on innovation, energy efficiency and stringent quality control will enable our customers to benefit from higher energy and operational savings while conserving the environment,” Dr. Mohanad added.

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