Riyadh – Mubasher: Halwani Bros announced that the total cost of its industrial complex in the industrial city in Jeddah in its two phases reached SAR 426.8 million, with a 29.2% increase.

The rise in costs was attributed to the increase in project's costs, in addition to production equipment worth SAR 31.4 million to facilitate the work mechanism and raise the electronic control level, according to a bourse filing on Thursday.

Also, around SAR 65 million allocated to increase to civil works and buildings, adding to security and safety measures, contributed to the rise in the costs.

The project was financed through a SAR 165 million loan arranged by the Saudi Industrial Development Fund (SIDF), in addition to the company’s own resources, as well as sharia-compliant loans.

The complex is expected to boost the company’s share in the local market and export and increase production capacity to be in line with Halwani’s expansion strategy 2025, the statement said.

The complex's first phase started operation on 15 April 2012 and was constructed at a total value of SAR 82.4 million. The second phase, which was constructed at a total value of SAR 344.4 million, started full operations on 12 July 2016.