Largest Tire Factory in Middle East to Open in Saudi Arabia
The USD 470 million state-of-the-art facility in Yanbu is expected to create over 2,000 local jobs.
Saudi Arabia’s Black Arrow Tire Co. (Blatco) has partnered with Thailand’s Golden Star Rubber Co. to establish the Middle East’s largest tire manufacturing facility in Yanbu, backed by a USD 470 million investment. As per the terms of the agreement, Golden Star will supply the facility with the natural rubber required for tire production in the Kingdom.
The state-of-the-art facility, under the Royal Commission for Jubail and Yanbu, will launch with an annual production capacity of 4 million tires for passenger vehicles, eventually scaling up to 6 million units per year, including truck and bus tires in later phases. The project is expected to create over 2,000 jobs, with half of the production serving the domestic market and the remainder exported to neighbouring countries.
The Saudi tire market, which produced 22.6 million units in 2023, is projected to grow at a compound annual growth rate of 1.26%, reaching 25.5 million units by 2032, according to the latest market research.
The agreement was formalised at a ceremony attended by Blatco Chairman Abdullah Al-Wahibi, Golden Star Rubber Chairman Amir Zafar, and Hassan Al-Huwaizi, president of the Federation of Saudi Chambers of Commerce.
This initiative aligns with Saudi Vision 2030 goals of fostering industrial localization, knowledge transfer, and strengthening local production. It also reflects the Kingdom’s strategy to reduce dependence on imports and emerge as a leader in the tire manufacturing industry.
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