Liebherr Marks Start of Construction for New Production Facility in Saudi Arabia
- Meagan Wood
- Feb 20
- 3 min read
30-Second Takeaway
Liebherr has laid the foundation stone for a new production facility in King Abdullah Economic City (KAEC), Saudi Arabia, marking a major milestone in its more than 40-year partnership with Juffali. Led by H.E. Katherina Reiche, German Federal Minister for Economic Affairs and Energy, the ceremony signals Liebherr’s commitment to strengthening local manufacturing, knowledge transfer and industrial cooperation in alignment with Saudi Arabia’s strategic economic transformation goals.
Liebherr Production Facility in King Abdullah Economic City
Liebherr has officially marked the start of construction of its new production facility in King Abdullah Economic City (KAEC), a strategic industrial hub on Saudi Arabia’s Red Sea coast.
The foundation stone laying ceremony was led by H.E. Katherina Reiche, German Federal Minister for Economic Affairs and Energy, highlighting the significance of the project within the broader framework of German-Saudi economic cooperation.
The new facility represents a key milestone in Liebherr’s long-standing partnership with Juffali, reinforcing both companies’ shared commitment to sustainable industrial development in the Kingdom.
Strengthening Local Production and Industrial Capacity
With the foundation stone now laid, Liebherr is taking a decisive step toward establishing local production capacities in Saudi Arabia.
The facility is designed to:
Combine local expertise with German engineering and manufacturing know-how
Operate in accordance with global Liebherr production standards
Support regional markets across the Middle East
Contribute to resilient and efficient industrial supply structures
A central pillar of the project is knowledge transfer and workforce development, ensuring the long-term growth of skilled local capabilities. By integrating training and technical development into the production framework, Liebherr aims to support sustainable industrial capacity building within the Kingdom.
This approach aligns with Saudi Arabia’s broader objectives to expand domestic manufacturing and strengthen value chains within key industrial sectors.
Alignment with Saudi Arabia’s Industrial Vision
The new production site reflects Liebherr’s commitment to participating in the Kingdom’s industrial transformation, supporting economic diversification and local content development.
Saudi Arabia continues to position itself as a regional manufacturing and logistics hub, investing in:
Advanced industrial zones
Infrastructure expansion
Supply chain localisation
Technology transfer initiatives
By establishing production capabilities within KAEC, Liebherr enhances its ability to serve regional customers more efficiently while contributing to local economic development.
The facility is expected to support both current and future demand across construction, infrastructure and industrial sectors in the Middle East.
More Than Four Decades of Partnership with Juffali
The project builds on a collaboration spanning more than 40 years between Liebherr and Juffali, one of Saudi Arabia’s leading diversified business groups.
Over four decades, the partnership has been characterised by:
Long-term investment
Shared industrial values
Technical cooperation
Mutual trust
The new production facility represents the next strategic phase in this cooperation, underlining the growing importance of Saudi Arabia within Liebherr’s global industrial footprint.
By strengthening local manufacturing, the initiative reinforces German-Saudi industrial ties while supporting the Kingdom’s long-term economic ambitions.
Strategic Importance for Liebherr
For Liebherr, the expansion into localised production in Saudi Arabia enhances:
Proximity to regional markets
Supply chain resilience
Service responsiveness
Long-term competitiveness
The development also demonstrates the company’s commitment to adapting its global production network to evolving geopolitical and economic frameworks.
The foundation stone ceremony signals not only the start of construction, but the beginning of a new chapter in Liebherr’s regional presence.
About Liebherr
Founded in 1949, the Liebherr Group is one of the world’s leading manufacturers of construction machinery, mobile and crawler cranes, tower cranes and industrial systems. The Group operates globally with a strong focus on engineering excellence, innovation and sustainable industrial development.
Website: https://www.liebherr.com
About Juffali
The Juffali Group is a diversified Saudi Arabian company with activities spanning industrial solutions, mobility, technology and infrastructure sectors. Through long-standing international partnerships, Juffali has played a key role in supporting industrial growth and technology transfer within the Kingdom.
Website: https://www.juffali.com
Frequently Asked Questions
Where is Liebherr’s new production facility located?
The facility is being constructed in King Abdullah Economic City (KAEC), Saudi Arabia.
Who led the foundation stone laying ceremony?
The ceremony was led by H.E. Katherina Reiche, German Federal Minister for Economic Affairs and Energy.
What is the purpose of the new facility?
The production site will establish local manufacturing capacity, support regional markets and promote knowledge transfer and workforce development.
How long have Liebherr and Juffali been partners?
Liebherr and Juffali have collaborated for more than 40 years.
How does this project align with Saudi Arabia’s economic strategy?
The facility supports Saudi Arabia’s goals of expanding domestic manufacturing, strengthening supply chains and promoting industrial diversification.
