Halwani Bros’ New Industrial Complex

Ireland's Minister for Trade and Development Jan O’Sullivan, tasting a snack produced at Halwani Bros' new industrial complex. Credit: PM Group.

Mohammad Kamal Salah of Halwani Bros explaining the project scheme to Jan O’Sullivan, Ireland's Minister for Trade and Development. Also seen in the photo is PM Group's project manager Tom Purcell. Credit: PM Group.

Being a port city, Jeddah offers good logistics for Halwani Bros' products to be sold in other domestic and export markets. Credit: Ammar shaker.

Halwani Bros is one of the oldest food manufacturing companies in the Gulf. It owns and operates a number of production plants in Jeddah and Egypt.

As part of its growth strategy, the company has started expanding its operations and manufacturing base in Jeddah in 2008. It has ordered an industrial unit consisting of integrated food processing and packaging facilities in the Jeddah Industrial Complex in 2009.

Construction on the facility began in 2010 and the complex started its commercial operations in July 2016. The new industrial complex supports the company’s business growth, especially in overseas markets.

Site for Halwani Bros’ new industrial complex

The industrial complex is located in Jeddah Industrial City (JIC) in Saudi Arabia. Being a port city, Jeddah offers good inbound and outbound logistics support to manufacturers in the city.

Project specifications

Halwani Bros. signed a financing agreement for the project with the Saudi Industrial Development Fund (SIDF) in June 2010. SIDF agreed to finance SAR165m ($44m) to meet 50% of the total project cost of SAR330m ($88m).

SIDF released SAR12.54m ($3.3m) in July 2011 as part of the agreed funding. The remaining funds required to complete the project were sourced from Islamic loans (approximately 25%) and the company’s own funds (approximately 25%).

Products produced by Halwani Bros

The new industrial complex produces tahina and halawa, jams and foods, dairy, cheese and meat products. Four separate sections were built for each of these product varieties.

The products are sold in Saudi Arabian market, as well as exported to Europe and the US, which are the major overseas markets served by Halwani Bros.

Construction of the industrial complex has been divided into two phases. A phase one development contract was awarded to the PM Group. It included the development of a 10,000m² production building for confectionary, sugar and contract packaging.

The second phase was completed at a cost of SAR258m ($68.7m). It was built on 60,000m² in the JIC. The second phase included a 50,000m² facility with nine different production lines for tahina, halawa, jam, cheese, dairy, processed meat, ice cream, juices and tins. The second phase was also developed by PM Group.

Apart from the nine production lines, the facility has centralised utilities, water and wastewater treatment units, office labs, workshops, cold stores and a special refrigeration plant.

Design of the facility

The industrial complex comprises state-of-the-art processing and packaging equipment. The final design stage for electromechanical works, including water desalination, industrial drainage, boilers and refrigerators was concluded in 2011.

Contractors involved in the major food manufacturing company’s industrial unit

International engineering, architecture and project management company PM Group was contracted to build the industrial complex. PM Group announced its involvement in the second phase of the project during the Enterprise Ireland trade mission to Saudi Arabia and Qatar.

The construction and architecture plans for the second phase were completed by March 2011. Tenders were called subsequently.

The civil and steel structural work of the second phase was awarded to Jeddah-based building and civil engineering contractor Allied Engineering Enterprises Saudi Arabia in August 2011. The contract value is SAR77m ($20.5m).

Halwani Bros. has set apart SAR33m ($8.8m) to directly purchase the materials required for the construction.

Tya Associates was appointed for the design and supervision of phase II building and infrastructure.

Halwani Bros expanded its manufacturing activity in order to benefit from the significant opportunity from the rising demand for the company’s products in domestic and export markets.