French automation giant Schneider Electric opens facility in Saudi Arabia

In mid-June, French multinational corporation Schneider Electric, the global leader in automation and energy management, announced the opening of a new facility in Riyadh, Saudi Arabia. The facility will house an assembly line for manufacturing Schneider Electric's intelligent Altivar Process Modular (APM) Drives, which are connected devices used to enhance energy efficiency in industrial processes, machines, and buildings.  The production of these drives will contribute to the Kingdom's energy efficiency and sustainability goals while also reinforcing the country's image as a global exporter of smart digital products. Each product manufactured at the facility will carry the "Made in Saudi Arabia" label.

Mohamed Shaheen, the Cluster President of Schneider Electric in Saudi Arabia and Yemen, stated that the new facility will accelerate the production of intelligent equipment in the Kingdom. The objective is to assist companies in improving their energy efficiency and achieving decarbonisation and sustainability targets. This announcement is in line with the Saudi Vision 2030 and the National Strategy for Industry, which was unveiled in November 2022 as part of the Kingdom’s broader economic diversification plan. The Schneider facility will further support Saudi Arabia's aspiration to become a global manufacturing hub.

Schneider Electric initially established a factory in Riyadh in 1987 and has been expanding ever since. In alignment with the Saudisation objectives set by the Saudi government and the principles of diversity, equity, and inclusion advocated by the United Nations Development Programme (UNDP), 80 per cent of Schneider's workforce comprises Saudi employees, including 10 per cent of women and 25 per cent of people with disabilities. Once completed, the new assembly line will create additional job opportunities, particularly for young people and women seeking technical roles.

The new facility project was announced during the inaugural edition of the Innovation Summit 2023, organised by Schneider Electric in Riyadh in June. The summit provided an opportunity for the company to showcase its latest technological innovations in the Kingdom and initiate discussions on sustainability, energy efficiency, and technological advancements. The event brought together government officials, diplomats, and global business leaders.

Speaking at the Summit, Ahmed Al-Zahrani, assistant minister of development and excellence said “In today’s dynamic landscape, innovation has transitioned from being a luxury to a necessity. (…) We are guided by five critical innovation pillars — a circular carbon economy, conventional power, renewable energy, sustainability and hydrocarbons, which help us shape a holistic and integrated approach toward innovation and sustainable development.” 

Ludovic Pouille, French ambassador to Saudi Arabia, also addressed the audience during the event and insisted on the growing importance of Saudi Arabia as a key partner to France: “Saudi Arabia is a beacon of opportunity, where our transformative and collaborative efforts can make a lasting impact. Schneider Electric is crucial to driving these efforts and the Innovation Summit perfectly aligns with this transformative moment in Saudi Arabia’s journey,” he said. 

Additionally, in June, Schneider Electric signed an exclusive Memorandum of Understanding (MoU) with the Royal Commission of AlUla, the organisation responsible for preserving the cultural and archaeological heritage of the city. Under the agreement, the French company will contribute to accelerating the transformation of AlUla into a sustainable tourism destination by implementing energy management solutions such as smart microgrids and intelligent buildings.