Han Ke General Manager - Saudi Arabia XCMG
How has XCMG’s first year in Riyadh shaped your understanding of the needs and expectations of the Saudi mining sector?
We opened an office in KSA in 2023, but our journey in the region began in the 90s when we were the first Chinese manufacturer to enter the Saudi market. With Saudi Vision 2030 driving efforts to diversify the economy, primarily through mining, we have focused on aligning our strategy with these national priorities by launching XCMG’s dedicated mining machinery department.
Our time in Riyadh helped us identify a strong demand for equipment capable of withstanding harsh climate conditions and meeting the precise requirements of each project. Building relationships with local stakeholders has also helped us better understand market dynamics. Additionally, we have noticed the importance of skilled operators and reliable after-sales support as the industry struggles with these challenges. Can you share any projects in KSA where you provided your equipment?
Al-Khaleeb Holding Company was facing significant challenges in optimizing operations, as their outdated articulated dump trucks were causing frequent breakdowns, lower efficiency, and higher operational costs. They needed a modern, reliable solution to meet higher production demands and align with Saudi Arabia’s ambitions for the Trojena project at NEOM.
In April 2024, we signed a trial agreement with Al-Khaleeb, providing them with one XDA45-ADTs for a 30-day evaluation period. This allowed them to test the truck’s performance firsthand and helped them build confidence in its capabilities. As a result, they purchased five units, and discussions are already underway to expand their fleet to 20 units in the near future. What is your strategy for gaining market share in KSA?
Many contractors rely on OEMs they have worked with for many years, and their technical teams are familiar with this equipment’s maintenance and troubleshooting, so convincing them to switch is a real challenge for us. We ultimately want to grow our market share by at least 20%.
Juan Carlos Ocampo Managing Director SCANIA MIDDLE EAST
Can you tell us about Hatch’s history and presence in the Middle East?
For over 30 years, Hatch has been deeply rooted in Saudi Arabia and the broader Middle East. We have worked closely with Ma’aden Saudi Arabia’s leading mining company right from its early days, helping to deliver some of the nation’s first gold projects.
Today, most of our work in Saudi Arabia is focused on mining and metals, with key partnerships across major players like Ma’aden, the Public Investment Fund (PIF), and the Ministry of Industry and Mineral Resources. What opportunities do you see in Saudi Arabia’s mining sector?
The new mining law and the government’s efforts to create an attractive business environment have made the country a magnet for some of the world’s best innovations and operators, bringing a lot of cutting-edge thinking to the table. As more of these advanced operators move into Saudi Arabia, they will bring valuable know-how and innovation, bridging the gap between Saudi Arabia and more developed mining regions. What key challenges should new mining companies be aware of if they are looking to enter the market?
The biggest challenge for new mining companies looking to enter Saudi Arabia is the availability and cost of contractors. With so many infrastructure and giga-projects happening in the country, many contractors are already booked, making it tough to find the right people.
Hatch has been in Saudi for a long time, so we know the local market and the established contractors. We have also helped bring in external contractors and get them up to speed with the Saudi market. But even with that, finding qualified contractors for complex mining projects is still a big challenge. To manage that, solid engineering is key. When the contractor pool shrinks, you want to make sure your engineering is rock solid, with everything from material quantities to project specs clearly defined upfront.