PVH Achieves Local Content Certification Under New Saudi Guidelines

15/10/2024

PVH achieves Local Content Certification in Saudi Arabia.

PVH is thrilled to announce that it has officially earned the Local Content Certification from the Local Content and Goods Program (LCGP) of the Kingdom of Saudi Arabia. As the first solar tracker manufacturer to receive this esteemed recognition, PVH’s commitment to advancing renewable energy within the Kingdom is more robust than ever.

A Milestone Achievement

Youssef El Sayed, CEO of PVH Middle East, expressed his pride in this accomplishment, acknowledging the dedicated efforts of the team in Saudi Arabia. “We are elated to have achieved this certification. It took us many years of hard work, and with our excellent team on the ground in Jeddah, we have covered all aspects and expertise to adhere to the new guidelines for KSA,” he stated. El Sayed emphasized that this certification signifies PVH’s leadership role in the Middle East and enhances the company’s ability to provide superior service to its clients.

Commitment to Sustainability and Energy Transition

Achieving the Local Content Certification positions PVH Middle East as the leading solar tracker supplier in the GCC market. This accomplishment not only underscores the company’s commitment to delivering high-quality products but also aligns with its core dedication to sustainability and enhancing the local economy.

“Our dedication to the development of solar energy in the Kingdom will remain unwavering,” El Sayed assured. “We are committed to the goals outlined in Saudi Vision 2030.” Unlike its competitors, PVH has made significant capital investments to acquire high-precision machinery, localizing over 200 jobs to maximize manufacturing value within KSA.

Localization: A Key Business Strategy

PVH’s success is built on a foundation of international growth and localization, striving to maintain a permanent presence in the countries and regions it operates in. With its headquarters in Saudi Arabia, PVH Middle East embodies this commitment. The company recently renovated its factory in Jeddah with state-of-the-art machinery and processes, anticipating a production capacity of 12 GW per year. As a leader in the solar tracker market in the MENA region, PVH has supplied over 12 GW and is actively participating in critical projects across the GCC.

The Importance of Local Content

In contrast to competitors, PVH understands that solar trackers consist of multiple parts assembled at project sites, making packaging as a single product challenging. While LCGPA guidelines necessitate an Audited Score for local content, many suppliers still rely on the Sector Score to meet minimum requirements. This baseline score serves new entrants in the Saudi market, yet it has become increasingly clear that relying solely on the Sector Score is insufficient.

Since 2021, PVH has proactively worked on localization, achieving an impressive 35% local content score through strategic investments in local infrastructure, workforce development, and innovation. This proactive approach positions PVH several years ahead of competitors in localization efforts.

Leading the Charge Towards a Renewable Future

As the solar energy sector in the Middle East experiences rapid growth, PVH is well-positioned to lead the region’s transition to a clean, renewable energy future. With its Local Content Certification, PVH not only reinforces its commitment to sustainable practices but also supports the economic development goals of Saudi Arabia.

By investing in local talent and technology, PVH is setting a benchmark for the renewable energy industry in the region, paving the way for a sustainable future.

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