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In a move that marks a milestone in the construction industry of the Middle East, Wolffkran, a renowned name in tower crane manufacturing, has forged a joint venture with the Zamil Group, an investment holding company in Saudi Arabia. The partnership aims to establish a WOLFF crane production facility in Riyadh, the capital city of Saudi Arabia, and to assemble a rental fleet comprising 300 WOLFF cranes. This venture represents a pioneering effort in the region, as it will inaugurate the first-ever tower crane manufacturing plant in the Middle East, catering not only to the Saudi Arabian market but also to the wider MENA region.
The announcement was made by Duncan Salt, CEO of Wolffkran Holding AG, during the signing ceremony held at the Private Sector Forum 2024 in Riyadh.
"Saudi Arabia is currently experiencing a construction boom and we are proud to be pioneering this dynamic market with local tower crane production," said Duncan Salt, CEO of Wolffkran Holding AG, at the signing of the contract at the Private Sector Forum 2024 in Riyadh.
"In the Zamil Group, we have found a strong partner for this project," said Dr. Peter Schiefer, owner and member of the Board of Directors of Wolffkran Holding AG. "A partnership that will create many synergy effects."
The Zamil Group, a family business headquartered in Khobar, boasts a robust local network and extensive experience across various sectors including construction, real estate, and steel construction. By entering the tower crane division, the group diversifies its portfolio, further enhancing its position in the market.
Despite the strategic expansion into Saudi Arabia, Wolffkran reassures its commitment to its core markets in Europe and the USA. The new production facility, anticipated to produce approximately 150 luffing jib and trolley cranes annually, will operate independently from the existing German sites. Salt emphasized that the German manufacturing strength of Wolffkran remains unaffected by this venture.
In addition to manufacturing, Wolffkran will establish a rental fleet of around 300 tower cranes in Saudi Arabia, responding to the increasing demand from local construction companies for major projects across the region.
"We have already received numerous inquiries from local construction companies for major projects," says Dr. Mohamed Abouelezz, Head of Business Development and Product Management at Wolffkran GmbH. "Whether Riyadh in the center, Dammam in the east, or the newly emerging Neom region in the northwest, the order books in the entire region are full and the first rental cranes are already on their way by ship and will be ready for use in a few weeks."
This expansion aligns with the Saudi Vision 2030, a comprehensive roadmap set by the Saudi government for the economic and social transformation of the Kingdom. Wolffkran's involvement in key projects, such as the expansion of pilgrimage sites and infrastructure development, underscores its commitment to supporting the objectives of Vision 2030. The joint investment of approximately a billion Saudi riyals signifies a substantial contribution to the economic diversification and growth envisioned by the Saudi government.
