Zahid Group rolls out Saudi Volvo truck production
Zahid and Volvo JV produces its first truck in the Industrial Valley of King Abdullah Economic City
Arabian Vehicles & Trucks Industry (AVI), a joint venture between Zahid Tractor & Heavy Machinery and Volvo Truck Corporation, has marked the start of production at its new facility in the Industrial Valley of King Abdullah Economic City (KAEC), after its first Volvo truck rolled off the assembly line.
AVI’s facility was designed by a joint Volvo-Renault project team and will be one of the first production hubs in the world to produce both Volvo and Renault trucks on the same line.
“This is a memorable day indeed in AVI’s long and rich history. The new AVI facility represents a significant breakthrough in the diversification of Saudi Arabia's industrial capabilities and highlights Zahid Group’s role as a leading business-to-business (B2B) group in the Kingdom,” said Wafaa Zawawi, chairman of AVI.
“This facility also underlines Zahid Group’s commitment to developing local talent by providing employment, training and growth opportunities for the Saudi youth. With a current Saudisation rate in excess of 30%, more opportunities for Saudi nationals will arise as the plant increases production.”
Zawawi went on to note that an earlier decision to relocate the AVI facility from Jeddah to KAEC was “driven by KAEC’s ability to provide a business-friendly environment, strong governance and fast-track employment opportunities – essential facets in running AVI ‘s large scale plant efficiently.”
Fahd Al-Rasheed, MD for KAEC, added: “The start of production at AVI’s assembly plant fulfils the concept of KAEC as a driver of diversification into non-oil sectors. We are happy to see the first Volvo truck roll out from the assembly line and give full credence to the words ‘Made in Saudi Arabia’.”