Production capacity could exceed $10 million
Faremco, a local manufacturer of electrical equipment, intends to open a new factory in Dammam, Saudi Arabia. Construction has begun and the factory is expected to start operating by mid-2014.
Khaled Farshoukh, Chairman of Faremco, said: “We’re targeting the Saudi Arabian market because it is one of the biggest markets for us.” He said they had been facing export difficulties to Saudi Arabia in the past two years because land transport routes were almost completely stopped. “Customers were afraid we would not be able to fulfill our engagements to them.”
The total space of the plot in Dammam reaches 6,000 square meters and the built-up area will measure 4,000 square meters. The cost of investment in the new facility will reach $3 million.
The production capacity of the new facility could reach $10 million in the first year. Products will be exported to the UAE, Kuwait, and Bahrain only.
The factory will create about 50 jobs. It will be under Lebanese management, but most workers will be foreigners to save on salary costs, according to Farshoukh.
Date Posted: Oct 28, 2013