Saudi Arabia's Al Kathiri secures loan for $9m 3D printing factory
Subsidiary Alian Industrial Co's Saudi Industrial Development Fund-backed facility will start production in H1 2020
Saudi Arabia’s Al Kathiri Holding Co announced in a missive to Saudi bourse Tadawul that, driven by the Ministry of Housing’s Motivating Building Technology mandate and the kingdom’s National Industrial Development and Logistics Program, its wholly owned firm Alian Industrial Co would be delivered finance by Saudi Industrial Development Fund for the construction of an Italian technology-powered 3D-printed concrete slab-making factory valued at $8.6m (SAR32.1m) on Industrial Cities Authority land.
Al Kathiri Holding Co signed an agreement with Italian construction technology company Emmedue in March 2019 to increase its 3D-printed concrete capabilities.
Worth $6.2m (SAR23.2m), the credit facility will cover the facility that will produce reinforced polystyrene sheets reinforced with iron and concrete.
The remaining 25% of the project’s cost will be financed by Al Kathiri Holding Co, with the factory’s production capacity at full operational commencement expected to be 130ha at a rate of 1,000 homes each year.
This output will be achieved over a three-year period after the first year of operations, with average sales of $16m (SAR60m) projected in the third year.
The plant is expected to be established and start production in H1 2020, and Al Kathiri Holding Co said the 3D-printed concrete was a solid alternative for traditional construction methods, delivering cost and time savings of 30%.
Its statement added: “In addition of its flexibility in the enforcement modern architectural designs, which can be used in various areas of residential units and commercial buildings, 3D-printed concrete slabs achieve the highest standards of efficiency in acoustic and thermal insulation, [and] this Italian technique is used in all countries of the EU and the US.”
Al Kathiri Holding said its loan from Saudi Industrial Development Fund would be repaid over a seven-year period, starting 17 May, 2022 – or 15/10/1443H on the Islamic calendar – in 12 semi-annual instalments.
Guarantees provided for the credit facility include mortgage on all the fixed assets of the project and corporate guarantee from Al Kathiri Holding Co.