Saudi Arabia’s Electrical Industries Co. (EIC) said its board approved a project to build a plant to manufacture tanks and radiators for power transformers, at an estimated cost of SR150 million ($40 million).
The board approved the project on Oct. 25, the Riyadh-listed company said in a disclosure to the Saudi Exchange on Monday.
The plant will make the components for medium-, high- and extra-high-voltage power transformers. EIC said it would be the first facility of its kind in the kingdom.
The company said the project is part of its strategy to diversify its products, support the localization of strategic industries and raise local content.
It will be financed from internal resources and bank facilities.
Construction is scheduled to start in the first quarter of 2027 and to be completed in the first quarter of 2029, according to the filing.
Trial production is expected to begin in the second quarter of 2029 and to last about three months, followed by commercial production in the third quarter of that year.
EIC said it expects the project’s financial impact to start appearing in the fourth quarter of 2029 and to be positive in that year.
No contracts have been awarded yet, and no related parties are involved in the project, the company said.
Tanks and radiators form the housing and cooling system of oil-filled power transformers, which are used in electricity transmission and distribution networks.
