Allied Engineering wins $20.5m Jeddah contract

Jeddah has been developing its industrial capabilities.

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Allied Engineering Enterprises Saudi Arabia has been awarded a construction contract for the second phase of an industrial complex project in the Kingdom worth SAR 77m ($20.5m).

The contractor’s win was announced yesterday by Halwani Brothers, the food processing and packaging company developing the facility. Allied Engineering will provide all civil and steel structural work for a new production zone that will eventually produce dairy, meat, juice and tinned food at a total second-phase cost of SAR 258m ($68.79m).

Halwani Brothers, based in Jeddah, said the signing of the contract will take place in August. The company also revealed that the bidding process for electromechanical works that cover water desalination, industrial drainage, boilers and refrigerators will start within the fourth quarter, as the final design is under preparation.

Halwani Brothers has also spent SAR 33m ($8.79m) on direct purchase of materials, it said in an updated statement on the stock exchange.

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The company has been battling to retain production levels and sales since it tem temporarily shut down manufacturing operations due to damages from the floods that tore through Saudi’s second biggest city in January.

“We did not incur any damage to our warehouses but our factory did get flooded which has affected our manufacturing operations resulting in the company being forced to shut down all equipment for at least 45 days,” said Saleh Hefni, CEO, told local press. However, first half net profit rose 5% to SAR 45m ($12m).

Allied Engineering Enterprises is a civil and building company, also based in Jeddah. Now 25 years old, the company is owned by Aal-Taher Group. It is a Class II contractor undertaking work throughout the kingdom worth up to SAR 200m ($53.33m).