MEBC Produces Batteries in Saudi Arabia
18 March 1998
MEBC Produces Batteries in Saudi ArabiaFLINT, Mich., March 18 -- Middle East Battery Company (MEBC), a joint venture among a group of Saudi industrialists and business leaders and Delphi Automotive Systems, has begun producing ACDelco maintenance-free automotive batteries in a new plant in Dammam in the Kingdom of Saudi Arabia. The plant began shipping batteries to customers in January 1998 and will increase production to build more than one million ACDelco maintenance-free batteries a year, using Delphi's newest and most sophisticated battery manufacturing technology, noted Khalid Al-Zamil, MEBC chairman. "This technologically advanced facility makes the factory an important addition to the growing industrial base of the Kingdom," AL-Zamil said. "ACDelco is a dominant brand in the Middle East. Products which had been imported will now be made locally. In addition, we have begun to export from Dammam to other markets in the Middle East." The new MEBC plant uses technology and production systems developed by Delphi, which produces more than 30 million of its patented sealed lead-calcium chemistry batteries a year, worldwide. Delphi has a 49 percent share in the joint venture and Delphi's Energy & Engine Management Systems division has management responsibility for the plant. "This is the first Delphi battery plant built specifically to produce batteries for the aftermarket," said Ronald M. Pogue, director-Battery Business for Delphi Energy & Engine Management Systems. "The joint venture is another example of Delphi's global strategy to localize production, especially in support of the efforts, or presence, of our customers in particular countries. "In Saudi Arabia, as we do in all of our battery plants, we will meet the most stringent environmental standards and we will actively pursue recycling of used batteries," Pogue said. ACDelco batteries produced by MEBC will cover most North American and Asian car and truck applications and will eventually cover European automotive applications. The primary market will be the Gulf Cooperation Council states: Saudi Arabia, United Arab Emirates, Kuwait, Bahrain, Qatar, and Oman. Other potential markets include Egypt, Lebanon, Sudan, Iran, Jordan, Syria, and Yemen. The plant is Delphi's first manufacturing operation in the Middle East. The plant's production will supplant the current importation of about 500,000 ACDelco batteries a year from France and the United States. Delphi operates battery plants in the USA, Canada, Mexico, Brazil, France, and South Korea and a new joint venture plant in China will begin production later this year. Delphi Automotive Systems, with headquarters in Troy, Mich., USA, is the world's most diversified supplier of automotive components and systems. With the recent integration of Delphi Delco Electronics Systems, Delphi operates 208 manufacturing facilities, 46 ventures and 27 technical centers in 36 countries. Regional headquarters are located in Paris, Tokyo and Sao Paulo. Delphi can be found on the Internet at http://www.delphiauto.com. SOURCE Delphi Automotive Systems