(MENAFN - Arab News) Some more international companies including shenhua group kalliyath steel trina solar and china communications construction company have agreed to join hands with gammon group to develop new industrial city in jazan with a capital investment of sr75 billion creating about 100000 jobs.
prince turki bin mohammed bin nasser director of international trade at the ministry of commerce and industry and the main partner of gammon has signed an agreement with noor mohammed noorisha managing director of kalliyath group to set up a 200 million steel plant in the city.
prince turki the main architect of the new city has expressed his happiness over the project’s progress. “it augurs well with custodian of the two holy mosques king abdullah’s vision to boost the kingdom’s regional development.” he said the participation of indian companies in the city would strengthen the historic saudi-indian ties.
“the new industrial city will spur the economic growth of jazan and bring about a face-lift for the region” said shaikh mohammed rafik chairman of gammon group who is spearheading the campaign to develop a state-of-the-art city with various industries including pharmaceuticals and petrochemicals.
“we are now in the process of signing agreements with prominent companies from all over the world including canada china india and malaysia” rafik told arab news. he added that kalliyath is a major group in india with a capital of rs.50 billion indian.
the agreement with prince turki who is a prominent businessman will enable kalliyath to expand its wings in saudi arabia to sell and export mild steel billets construction steel bars and structural steel products. the new steel plant will have a capacity to produce 1.5 million tons annually.
saheed palkkandy kottoth a director of gammon said he was trying to bring a johannesburg-based helicopter manufacturing company to jazan. he is holding negotiations with shenhua group a major mining and energy company in china to establish an electricity power plant in the city.
riyas mohammed another director is endeavoring to bring chinese firms specialized in manufacturing household utensils. he is also working to establish a food-processing factory and a tire-manufacturing factory in the city with the support of major international companies.
“the new projects and factories will bring a capital investment of more than sr10 billion” rafik said. “we’ll take over the land next month to build infrastructure facilities required for the city.
he added that prince turki has been authorized by the government to develop the city by bringing foreign investors to build the city’s entire infrastructure facilities such as roads bridges commercial centers power plants water treatment plants oil refinery and petrochemical plants.
“the main attraction of this project is that if major companies are ready to invest and transfer their technology the government will pay them 75 percent of their project cost in soft loans for 20 years” rafik told arab news.
gammon is endeavoring to establish automobile industries it parks food processing industries factories for building materials hospitals and hotels in jazan to make it one of the best commercial cities in saudi arabia.