Wolffkran, a leading manufacturer of tower cranes headquartered in Zug, Switzerland, has entered into a joint venture with Zamil Group, one of the largest investment holding companies in Saudi Arabia, to set up its first manufacturing facility in kingdom.

Unveiling the big regional strategy, Duncan Salt, CEO of Wolffkran Holding, said the company along with Zamil Group will be investing around SAR1 billion ($ ) in the newly founded joint venture.

As part of the JV, Wolffkran will be setting up its first tower crane manufacturing plant in the Middle East region and the hunt is on for a suitable location, he stated, adding that the duo is also working on a new company name for the JV.

According to Salt, the new plant will not only supply Wolff cranes in Saudi Arabia but also cater to the entire Mena market.

“Saudi Arabia is currently experiencing a construction boom and we are proud to be pioneering this dynamic market with local tower crane production,” remarked Salt at the signing ceremony held on the sidelines of the recently-held Private Sector Forum 2024 in Riyadh.

In addition to the production of Wolff cranes, Wolffkran will establish a rental fleet of around 300 tower cranes in Saudi Arabia as part of the joint venture.

“We have already received numerous inquiries from local construction companies for major projects,” revealed Dr Mohamed Abouelezz, the Head of Business Development and Product Management at Wolffkran GmbH.

“Whether Riyadh in the centre, Dammam in the east, or the newly emerging NEOM region in the northwest, the order books in the entire region are full and the first rental cranes are already on their way by ship and will be ready for use in a few weeks,” he noted.

“In the Zamil Group, we have found a strong partner for this project,” said Dr. Peter Schiefer, owner and member of the Board of Directors of Wolffkran Holding.

“The long-established family business based in Khobar not only has an excellent local network, but also has many years of experience in the construction, real estate, and steel construction sectors. With the tower crane division, the company is adding another line of business to its broad portfolio,” he stated.

The two partners are currently looking for a suitable location for the state-of-the-art production facility, which will produce around 150 luffing jib and trolley cranes per year exclusively for the Mena region.

“We will continue manufacturing for our core markets in Europe and the US at our two established sites in Germany. The new production facility will operate completely independently of the German sites,” stated Salt.

According to him, Wolffkran has been active in the Arabian Peninsula together with Roots Group Arabia Company since 2009 and has played a key role in the expansion of the pilgrimage sites in Makkah and Madinah as well as the construction of Princess Nora bint Abdul Rahman University in Riyadh, Jeddah International Airport and Jeddah Tower in Jeddah.

Last year, Wolffkran set up its new unit, Wolffkran for Equipment in Riyadh, a branch that will primarily focus on the service and rental of Wolff cranes.

Wolffkran’s increased engagement in Saudi Arabia is in line with the Saudi Vision 2030, a set of goals issued by the Saudi government for the economic and social development of the kingdom, stated Salt.

The initiative focuses primarily on the private enterprise sector, which is being promoted with the help of Saudi sovereign wealth fund PIF (Private Investment Fund), he added.