RIYADH - Alat, a Public Investment Fund (PIF) company, and Carrier Global Corporation (NYSE: NYSE:CARR), have announced a partnership to establish a state-of-the-art manufacturing and R&D center in Saudi Arabia. This facility is set to produce advanced heating, ventilation, and air conditioning (HVAC) solutions to meet the demands of the Kingdom's Giga projects like NEOM, as well as for broader regional and global distribution.
The collaboration aims to capitalize on Alat's financial capabilities and Carrier's technological and manufacturing expertise to create intelligent climate solutions in Saudi Arabia. This move marks the first phase of Alat's partnership with Carrier, targeting the MENA region's HVAC industry, which is projected to reach a US$10 billion market by 2030 and a global market of US$334 billion by the same year.
Amit Midha, CEO of Alat, emphasized the partnership's alignment with Alat's focus on smart building solutions that integrate innovation, sustainability, and efficiency. Carrier's commitment to sustainability was highlighted as a key reason for their selection as a partner.
Carrier's Chairman & CEO, David Gitlin, expressed enthusiasm for the growth opportunities in the region and the alignment of the Kingdom's vision with Carrier's goals. He also reaffirmed Carrier's ongoing commitment to its joint venture with EA Juffali and Brothers in Saudi Arabia since 1987.
The planned facility, expected to break ground later this year, will produce high-tech, energy-efficient HVAC products suitable for the MENA market and beyond, potentially creating up to 5,000 local jobs. The R&D efforts will focus on developing technologies tailored to the region, including systems designed for high ambient temperatures and natural/Low GWP refrigerants.
Saudi Arabia's strategic location, with access to over 2 billion consumers and its role in major trade routes, positions it as a central player in the region's economic growth. The Kingdom is actively adopting Fourth Industrial Revolution applications and aims to increase its number of manufacturing facilities to 32,000 by 2035.
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