Saudi Diesel Equipment Co, Perfect Arabic Factory (an allied business of Bahwan International Group) and (Daewoo Trucks) forge strategic alliance for commercial vehicle assembly in Saudi Arabia

Muscat: In a significant move towards enhancing the commercial vehicle industry in the Kingdom of Saudi Arabia, Saudi Diesel Equipment Company (SDEC), Perfect Arabia Factory for Metal Industries (PAF), an allied business of Bahwan International Group, and Daewoo Trucks have entered into a non-binding memorandum of understanding (MOU). This MOU, formalized on March 5, 2024, in Saudi Arabia, aims to explore the potential for collaboration in the assembly of commercial trucks in Saudi Arabia and represents a promising development for the commercial vehicle industry in the region, potentially leading to increased local production, job creation, and technological transfer. This ceremony took place in the presence of Mr. Bangshin Kim, President & CEO of Daewoo Trucks.

A spokesperson for Saudi Diesel Equipment Company, the sole distributor of Daewoo Trucks in KSA, said that the MOU outlines an understanding between the parties to focus on the assembly of Daewoo Trucks by PAF and SDEC, supported by technical assistance from Daewoo Trucks. This collaboration aims to leverage local capabilities in vehicle assembly, thereby enhancing the availability and quality of commercial vehicles in the Saudi market.

A representative for Perfect Arabia Factory said, “Joining forces with Saudi Diesel Equipment Company and Daewoo Trucks marks a pivotal step in our journey towards innovation and excellence in the commercial vehicle sector.”

A Daewoo Trucks official remarked, “This understanding of collaboration marks a significant step in our efforts to expand our presence in the Middle Eastern market. Our collaboration with Saudi Diesel Equipment Company and Perfect Arabia Factory is a testament to our commitment to the Saudi market, fostering growth and delivering superior commercial vehicle solutions.”

The parties have committed to making their best efforts to materialize the opportunities outlined in the MOU.

About SDEC:

Saudi Diesel Equipment Company, a wholly-owned subsidiary of Tawad Holding Co., was established in 1978. SDEC started by having a local manufacturing facility to design, develop, and produce its own branded generator sets along with power-related accessories. This is where SDEC found its niche and became a pioneer in the diesel generator industry, and was able to develop and expand its business over the years. Today, SDEC’s portfolio has expanded to include Construction Equipment, Lifting & Concrete Equipment, Commercial Vehicles, Parts & Attachments, and Equipment Rentals, and continues to grow as a prominent player in the equipment market, providing the highest quality of machinery and commercial vehicles.

About PAF:

Perfect Arabia Factory for Metal Industries (PAF), established in 2010 and an allied business of Bahwan International Group, is a reputed entity with over 45 associate companies and more than 2000 employees, with a presence across the Sultanate of Oman, the Gulf Region, North Africa, and South Asia. This group of companies represents an impressive portfolio of more than 40 global brands, with their diversified businesses covering a wide spectrum including automobiles, healthcare, agriculture, renewable energy, airport solutions, logistic solutions, earthmoving equipment, construction equipment, industrial equipment, debt collection services, high-end security solutions, survey instruments, and elevators and parking solutions, which are some of the major businesses among them.

About Daewoo Trucks:

Daewoo Trucks is the only specialized commercial vehicle maker in South Korea. Over the last 30 years, Daewoo Trucks has grown alongside South Korea’s commercial vehicle sector by offering vehicles for cargo freight, construction, and special purposes that are needed for the customers’ various business environments. In order to fulfill the customers’ various needs, Daewoo Trucks has strengthened its product line-up ranging from LCV to M&HCV, and is making utmost efforts to make high-quality vehicles by making a large-scale facility investment as well as keeping production lines in the best condition. Daewoo Trucks is continuously developing and producing reliable and safe products to help customers maximize their value creation.