Kocaer Çelik Eyes Saudi Arabia Expansion with New Factory Study
Leading Turkish steel profile manufacturer Kocaer Çelik Sanayi ve Ticaret A.Ş. (KCAER) is exploring the possibility of a new factory in Saudi Arabia. This development follows their recent selection as a registered supplier for the ambitious Neom megacity project.
KCAER's Board of Directors authorized the launch of a feasibility study on 15 April 2024 (resolution 02/2024). This greenfield investment (building a new facility on undeveloped land) could significantly bolster KCAER's presence in the Middle East and North Africa (MENA) region.
The potential Saudi Arabian factory has several key objectives:
- Capitalize on the booming MENA market, with a particular focus on the Neom project. A local presence would allow KCAER to directly supply steel profiles for the megacity's construction.
- Enhance global competitiveness and capture a larger market share. The new factory would position KCAER to win more steel contracts across the entire MENA region.
- Leverage Saudi Arabia's investment-friendly environment. The Saudi Arabian Ministry of Investment offers attractive incentives specifically designed to support foreign manufacturers.
- Increase sales volume in neighboring countries. Local production would offer logistical advantages and potentially lower costs for customers in nearby areas.
This potential expansion highlights Saudi Arabia's growing importance in the global steel market. KCAER's decision underscores the potential benefits for the company, such as increased revenue and market share, and the region's development, including job creation and economic growth.
Investor
Kocaer Çelik Sanayi ve Ticaret A.Ş. (KCAER)
Outbound region
Inbound region
Industry
Construction and infrastructure
Date of record
15 April 2024
