Anixter International, a global distributor of electronic communication and security products, will establish a joint venture with a local partner in Saudi Arabia, its first in the Kingdom.
Following the signing of a ‘strategic partnership agreement’ with Mohawarean Trading Company, a subsidiary of the Mohawarean International Group, a new business entity, Anixter Saudi Arabia will be created. Bob Eck, president and CEO of Anixter, said the new firm would target the burgeoning Saudi Arabian market and would have the majority holding in the joint venture.
“One of our key strategies is to expand the markets we serve,” Eck added, “We believe that Saudi Arabia presents a significant opportunity for Anixter and its business partners, given the Kingdom’s investments in infrastructure, its strong economy and strategic economic and geographic position in the Middle East markets that Anixter serves.”
Anixter has been actively involved in a number of projects globally, including wind farms, data centres and manufacturing production line. The company is a distributor of communication and security products, electrical and electronic wires and cables, fasteners and other small parts.
Bob Eck said that the move to Saudi Arabia was the latest and most significant commitment to the Middle Eastern market, following previous successful investments in the UAE, Oman and Qatar.
Mohammed Al Othman, group president and CEO of MIG, said that he welcomed the link up with the US based distributor as it would give the Kingdom access to knowledge and technologies that would help further the country’s development.
“The combination of Anixter’s capabilities and strong brand, coupled with Mohawarean Trading Company’s established presence and knowledge of the marketplace in the Kingdom, provides an exciting formula to develop [our] position in the Saudi market for the long term.”