HLG, in a joint venture with TAV and Al Rajhi, has been awarded a SAR2.87 billion (DHS2.81) billion contract in Saudi Arabia for the design and construction of a new maintenance, repair and overhaul facility (MRO) for Saudia Aerospace and Engineering Industries (SAEI). HLG’s share of the contract is worth SAR573 million (DHS562 million).
The project, which is located within the King Abdulaziz International Airport in Jeddah, Saudi Arabia, is part of an overall SAR27 billion (DHS26.45 billion) expansion plan to increase the airport’s capacity from 13 million to 80 million passengers per year by 2035.
HLG CEO and Managing Director, Laurie Voyer, said this project was typical of some of the new work opportunities that HLG was pursuing in the region and reflected the Group’s growth strategy which aims to expand into new geographic markets.
“This is a very important project for HLG. Our strategy is based on diversifying our workload by both geography and work type – working with clients who place a high value on our complete service offer. “This project is our first major project in Saudi Arabia, and we are pleased to be able to leverage off the Leighton Group’s Australian and Asian experience in delivering airport infrastructure, and apply this knowledge to a new market.
“Saudi Arabia is a key growth market for HLG. It is by far the largest market in the Middle East and close to DHS183.66 billion worth of projects will be awarded there this year,” he said.
Mr Voyer added that HLG expected to secure further work in the Kingdom this year. “We’re confident that this is the first of a number of projects we will secure in Saudi Arabia in 2012,” he said.
The JV’s scope of work includes the design and construction of:
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11 aircraft maintenance hangars, with clear spans up to 160 metres
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maintenance, ancillary buildings and workshops, comprising 343,000 square metres of built-up area
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all electro-mechanical and special equipment required for a modern automated MRO facility
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corresponding aprons, taxiways and airfield infrastructure works The MRO facility will service all types of modern aircraft, including the latest A380 and B747 models and will be one of the largest MRO facilities in the Middle East.
SAEI also retains an option to increase the facility by a further 150,000 square metres, which includes a further nine hangars.
Design and enabling works are expected to commence immediately, with the facility due for completion in October 2014 following a 30 month design and construction period.
SAEI i s pa r t of Saudi Arabia n Ai rl ines Group.