Saudi Arabia’s first plant for producing car air conditioners has been officially opened according to Saudi-based newspaper, Arab News.

The is the product of a joint venture between Abdul Latif Jameel Co. Ltd., Saudi Arabia’s sole distributor of Toyota and Lexus cars, and Japan’s Denso Corporation. They each own 50% of the joint venture company – Denso Abdul Latif Jameel Co. Ltd. The new production company is expected to contribute significantly to closer industrial ties between Japan and Saudi Arabia.

The plant aims to produce about 20,000 air conditioners annually for Toyota Hilux.

Yoichi Miyamoto, managing director of Denso Abdul Latif Jameel Co. Ltd., said the factory’s production range would include cooling units, and hoses and tubes. “The factory has already achieved 35 percent Saudization. Saudis manage key positions involving production, and quality assurance and production control. Our plans include raising Saudization to 50 percent and expanding our manufacturing base in areas like car accessories and spareparts. We’ll also target pickups other than Toyota Hilux for the plant’s air conditioners.”