Power Rack and Dexion have established a joint venture in Saudi Arabia to develop a local manufacturing facility for warehouse storage and pallet racking systems. The facility will manufacture storage solutions for customers in the Kingdom and support the development of local industrial capabilities.
The initiative is aligned with Saudi Arabia’s Vision 2030 and focuses on local manufacturing, technology transfer and employment opportunities in the logistics and manufacturing sectors. The new facility will produce pallet racking systems and high-density storage solutions, including Dexion’s MOVO mobile racking system. The system is designed to increase storage capacity within an existing warehouse footprint and can be used in logistics facilities, automated warehouses and temperature-controlled environments.
The joint venture will operate on the principle of “In Saudi Arabia, for Saudi Arabia”. Power Rack will contribute its local manufacturing infrastructure and knowledge of the Saudi market, while Dexion will provide engineering expertise and storage technology.
Local production is expected to provide customers with shorter delivery times, greater flexibility and direct technical support. The companies said the facility will enable businesses across Saudi Arabia to expand their storage and logistics operations according to their requirements.
Sergio Rodriguez Cuesta, Chief Executive Officer of Gonvarri Material Handling Group, said, “Saudi Arabia represents one of the fastest-growing logistics markets in the region. Through this partnership, we are combining international technology with strong local manufacturing capabilities to serve customers more efficiently and sustainably.”
Sheikh Talal Idris said, “This partnership reflects our commitment to strengthening Saudi Arabia’s industrial base and positioning Power Rack as a key local manufacturer in advanced storage and logistics solutions. Our goal is not only to supply the market, but to build long-term industrial value within the Kingdom and support the continued development of the logistics sector.”
Saudi Arabia’s logistics industry is expanding with investments in infrastructure, growth in e-commerce and increasing adoption of warehouse automation. The Kingdom’s location between Europe, Asia and Africa also supports its role as a regional logistics hub. The joint venture will combine Power Rack’s local capabilities with Dexion’s international experience in warehouse storage systems. The partners aim to provide storage and racking solutions for businesses operating across different logistics and industrial applications.
The facility will manufacture a range of pallet racking and high-density storage systems, allowing customers to source products locally rather than depending entirely on imports. The companies expect this approach to support faster supply, local technical assistance and closer engagement with customers.
The partnership also forms part of the companies’ broader focus on developing warehouse infrastructure in markets where demand for efficient storage and material handling is increasing. Through local manufacturing and technology transfer, Power Rack and Dexion plan to support the development of Saudi Arabia’s logistics and industrial sectors.
