The strategic relocation of the factory marks a new chapter for National Automotive Industry and brings forth advancements in infrastructure, sustainability, and operational efficiency

The National Automotive Industry (NAI) is embarking on a significant journey with the relocation of its truck assembly factory.

The decision to move stems from the existing facility finding itself situated in the heart of Jeddah city, leading to challenges in operational logistics and prompting the need for a more strategic location.

This relocation opens a new chapter for NAI, bringing forth various advancements in infrastructure, sustainability, and operational efficiency.

Schulze ... pioneering truck manufacturing in the region

"We embark on a transformative journey, relocating our truck assembly factory to King Abdullah Economic City. This strategic move symbolises NAI’s commitment to efficiency, sustainability, and market leadership. With advanced technologies and a green focus, we’re not just moving our facility; we’re pioneering the future of truck manufacturing in the region. As we break ground, we redefine the landscape, ensuring NAI’s legacy as an industry innovator," says Heiko Schulze, the CEO of Juffali Commercial Vehicles (JCV).

The primary driver behind the move is the current factory’s central location within Jeddah city.

As urban development surrounds the facility, logistical challenges have arisen, impacting the timely arrival of container kits and the transportation of fully assembled trucks.

By relocating, NAI aims to overcome these hurdles and streamline its operations.

The new factory promises a leap in technological advancements with the integration of automation solutions.

Bayounes ... envisioning an exciting future

This includes electric tightening tools, robotics, manipulators, and automated guided vehicles.

These technologies aim to optimise the assembly process, enhancing efficiency and precision in truck manufacturing.

"We stand on the brink of a transformative chapter with the establishment of our new factory, nestled within the expansive Juffali Industrial Park (JIP). Proudly spanning 170,000 sq m in a grand total of 388,000 sq m, this facility marks a strategic leap forward. Initially focusing on semi-knocked down (SKD) assembly, we envision an exciting future, where the potential for Completely Knocked Down (CKD) assembly and cabin manufacturing awaits in our expansion area," says Khalid Bayounes, Production Director of the NAI factory.

IMPACT ON CURRENT & FUTURE OPERATIONS

Logistical constraints related to traffic patterns will be alleviated, ensuring smoother operations for the arrival of kits and the delivery of finished trucks.

This relocation marks a pivotal moment in NAI’s commitment to meeting market demand for construction and transportation vehicles.

The expansion comes with a silver lining as numerous job opportunities will be created. Engineers, assembly workers, and professionals from various fields will be needed to support the operations of the new factory.

The choice of the new location, King Abdullah Economic City (KAEC), was made strategically, considering its support from King Abdullah Port (KAP) and its potential for future automotive plants.

NAI is committed to environmental responsibility and plans to implement Industry 4.0 and Greenfield initiatives.

GREEN INITIATIVES AT THE NEW FACILITY

The new factory integrates automation solutions

The commitment to sustainability extends to the implementation of Industry 4.0 practices and a Greenfield approach.

Moreover, there are plans to integrate solar cells into the factory’s roof, showcasing NAI’s dedication to eco-friendly operations.

NAI is gearing up to incorporate electric vehicles (EV) into its assembly portfolio.

The company recognises the evolving landscape of the automotive sector and is strategically planning for the potential assembly of EVs in its new state-of-the-art facility.

This forward-looking initiative aligns with NAI’s commitment to staying at the forefront of technological advancements and meeting the growing demand for sustainable transportation solutions.

The relocation process is underway, with the start of production scheduled for Q2 2025. The key milestones and phases are being meticulously planned to ensure a seamless transition.

The new factory integrates automation solutions

The relocated factory plays a crucial role in NAI’s market expansion plans. It will facilitate the assembly of heavy, medium, and light duty trucks from Mercedes-Benz and FUSO Trucks, meeting the rising demand for commercial vehicles in the region.

In conclusion, NAI’s strategic relocation marks a pivotal moment in the company’s journey, promising advancements in technology, sustainability, and market presence.

As the company prepares to break ground in its new home, it is set to redefine the landscape of truck assembly in the region.