Halwani Bros.' New Industrial Complex, Saudi Arabia

Halwani Bros. is one of the oldest food manufacturing companies in the Gulf

It owns and operates a number of production plants in Jeddah and Egypt.

As part of growth strategy, the company has started expanding its operations and manufacturing base in Jeddah in 2008. It has ordered an industrial unit consisting of integrated food processing and packaging facilities in the Jeddah Industrial Complex in 2009.

Construction on the facility began in 2010 and is underway, with scheduled completion in 2013.

The new industrial complex will support the company's business growth, especially in overseas markets.

Site for Halwani Bros.' new industrial complex

The industrial complex is located in Jeddah Industrial City (JIC) in Saudi Arabia. Being a port city, Jeddah offers good inbound and outbound logistics support to manufacturers in the city.

Project specifications

Halwani Bros. signed a financing agreement for the project with the Saudi Industrial Development Fund (SIDF) in June 2010. SIDF agreed to finance SR165m ($44m) to meet 50% of the total project cost of SR330m ($88m).

SIDF released SR12.54m ($3.3m) in July 2011 as part of the agreed funding. The remaining funds required to complete the project are being sourced from Islamic loans (about 25%) and the company's own funds (about 25%).

Products produced by Halwani Bros.

"Halwani Bros. is one of the oldest food manufacturing companies in the Gulf."

The new industrial complex will produce tahina and halawa, jams and foods, dairy / cheese products and meat products. Four separate sections will be built for each of these product varieties.

The products will be sold in Saudi Arabian market as well as exported to Europe and US, which are the major overseas markets served by Halwani Bros.

Construction of the industrial complex has been divided into two phases. A phase one development contract was awarded to the PM Group. It includes the development of a 10,000m2 production building for confectionary, sugar and contract packaging.

The second phase is estimated to cost SR258m ($68.7m). It is being built on 60,000m2 in the JIC. The second phase includes a 50,000m2 facility with nine different production lines for tahina, halawa, jam, cheese, dairy, processed meat, ice-cream, juices and tins. The second phase is also being developed by PM Group.

Apart from the nine production lines, the facility will have centralised utilities, a water and wastewater treatment unit, office labs, workshops, cold stores and a special refrigeration plant.

Design of the facility

The industrial complex will have state-of-the-art processing and packaging equipment. The electromechanical works, including water desalination, industrial drainage, boilers and refrigerators for the second phase are in final design stage. Bids for these works are expected to be called by the end of 2011.

Contractors involved in the major food manufacturing company's industrial unit

The international engineering, architecture and project management company PM Group was contracted to build the industrial complex. PM Group announced its involvement in the second phase of the project during the Enterprise Ireland trade mission to Saudi Arabia and Qatar.

"The industrial complex is located in Jeddah Industrial City (JIC) in Saudi Arabia."

The construction and architecture plans for the second phase were completed by March 2011. Tenders were called subsequently.

The civil and steel structural work of the second phase was awarded to Jeddah-based building and civil engineering contractor Allied Engineering Enterprises Saudi Arabia in August 2011. The contract value is SR77m ($20.5m).

Allied Engineering is required to complete the contracted works within 18 months, by February 2013, under the contractual agreement. Halwani Bros. has set apart SR33m ($8.8m) to directly purchase the materials required for the construction.

Tya Associates was appointed for the design and supervision of phase II building and infrastructure.

Halwani Bros. is expanding its manufacturing activity in order to benefit from the significant opportunity from the rising demand for the company's products in domestic as well as export markets.