A NEW gypsum factory equipped with the latest technology in gypsum production and designed to cater to local demands and substitute imports is poised to launch commercial production in Saudi Arabia this month.

Al Watani Gypsum Factory is currently conducting operational tests at its new gypsum powder and gypsum board factory in Yanbu. The company is set to launch production of gypsum powder this month at its new state-of-the-art facility, which will produce 600 tonnes per day of high-quality gypsum of various types – French, ceramic, anti-humidity, medical and Alfa gypsum. 
In the next phase – which is scheduled to be operational within six months – the factory will launch its gypsum board production line which will have an annual capacity of 8 million sq m.
The factory has also secured a SR53 million ($14 million) loan from Saudi Industrial Development Fund, in line with the Fund’s keenness to promote investment in heavy industries that boost the national economy. This makes Al Watani the first private gypsum factory in Saudi Arabia to obtain a loan from Saudi Industrial Development Fund in recognition for its high potential, says a spokesman for the company.
“We employ the latest technology within our factory. All operations within our advanced facility are fully automated, right from bringing in the stones to loading the trucks with finished goods,” says Saad Rabea Al Khabery, financial manager.
Equipped with a 1 million sq m quarry, Al Watani Gypsum Factory has been established on a 250,000 sq m area on Yanbu-Amlj Road.
The factory is claimed to be the first of its kind in the Middle East to produce various kinds of gypsum including standard gypsum, as well as adhesive gypsum and special gypsum used in the manufacture of sanitary ware. It will also produce hard plaster gypsum that is suitable for external applications in the region, as it is resistant to water, humidity and high temperatures.
 “We are looking at producing gypsum with special characteristics to fulfil the market demand and substitute imports, thus helping the national economy,” he says.
“Our factory has immense capabilities, being fully automated.  Installed under the supervision of German experts, our production lines are considered the latest in the gypsum production arena and have a design capacity of 200,000 tonnes annually,” he adds.
The company is also employing experts and consultants to train its Saudi workforce.  
Al Watani Gypsum Factory is an affiliate of the Mohammed Abdulaziz Al Rajhi & Sons Company, which has various steel and real estate interests.
The company is initially targeting the markets of Makkah, Madinah, Yanbu, Jeddah, Taif and Jizan, to be followed by the GCC markets.
To ensure that its products are well received in the regional markets, the company’s executive committee recently met to establish a sales strategy.  The firm has also set up offices in Riyadh, Jeddah and Yanbu.
“We are also looking at setting up offices in Dubai, Qatar and Kuwait shortly,” says Al Khabery.
Its initial sales foray has already achieved results, he says, with orders having been received both from the domestic as well as export markets.