Red Sea Housing gets SR85m contract from KAEC.
"We finished the proceedings today and acquired a 193,000 square meter land within the industrial zone of KAEC and agreed that it will be leased 20 years from now," RSHS said in a statement.
The announcement is with reference to the company's statement on July 9, 2013, with regards to obtaining the investor license from the Economic Cities Authority to construct a factory in KAEC.
The company added that the financial impact for constructing the factory will commence in Q3 2013. "Related information will be disclosed in due course," the announcement added.
The contract is part of their plan to expand its services and operations in the Kingdom. The plan was previously seconded and approved by the Economic Cities Authority (ECA) and underwent proceedings that ended yesterday with RSHS finally acquiring an investment license from the city authorities.
"The construction of the new factory will begin this year and expected to be operational next year," RSHS said.
The two companies also cooperated earlier with KAEC granting RSHS' proposal to relocate its headquarters from Jubail to Rabigh within the economic city. This is RSHS' fourth factory to be constructed within the KAEC.
The RSHS is a public company that specializes in selling and leasing a wide range of buildings for commercial and residential use. It also offers housing solutions to the oil and gas, construction and mining sectors as well as government and some organizations. It has four high-end manufacturing ISO certified facilities located in Saudi Arabia, United Arab Emirates, Ghana and Libya.
KAEC, on the other hand, is a high-end project spearheaded by Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz in 2005. It is located along the Red Sea approximately 100 kilometers north of Jeddah. The city is divided into six sectors: The industrial zone, sea port, residential areas, sea resort, educational zone and central business district. It is considered as one of the greatest achievements of King Abdullah in the economic and industrial sectors.
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