Commercial Laundry
Business Unit
A Key Differentiator
One of the fastest growing and most technically advanced segments within IH is the Laundry Business Unit, a specialized unit that provides extensive laundry and linen services to hotels, hospitals, airline ground handlers, and industrial players.
Operating from two large production plants and two remote distribution centers, including oversight of the new Red Sea Project Laundry and ensuring top-tier linen quality for high-end resorts, these facilities handle immense volumes, with achievements like processing up to 64 tons per day, far exceeding the theoretical capacity of 42.5 tons in our production unit in Jeddah, King Abdullah Economic City (KAEC).
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Eco-Efficient Innovations
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Laundry Sustainability Highlights
-4.5L/kg water savings per wash
30% drop in energy costs via low-temperature cycles
Rooftop Solar arrays reduce dependency on fossil fuels
Segregated Waste for plastic, cloth, and hazardous materials
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Strategic Actions Taken
The Laundry business unit has implemented several strategic actions to optimize its operational focus and financial performance, with significant improvements in client management and cost efficiency:
Client Focus and Service Optimization Operational Capacity and Record Processing Cost Management and Efficiency The Laundry business unit has strategically refined its client portfolio by prioritizing engagements with significant players in hospitality and healthcare. This approach involved discontinuing smaller, labor-intensive accounts to boost overall profitability and operational efficiency. Demonstrating remarkable operational capability, the Laundry business unit in KAEC processed a record 64 tons in a single 24-hour period, surpassing its planned daily capacity of 42.5 tons. The average daily volume saw a substantial increase from 36.9 tons in 2023 to 46.6 tons in 2024, reflecting enhanced operational efficiency. The business unit successfully reduced its average cost per kilogram in 2024. This improvement in cost management not only demonstrates enhanced operational control but also supports the ongoing delivery of high-quality service. -
Laundry Operational Milestones
64T processed in 24h (vs. 42.5T capacity)
3.5L/kg water consumption (down from 8L/kg)
46.6T average daily volume in 2024 (up from 36.9T)
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Operational Excellence & Challenges
Although the business unit achieved a 12% top-line budget surplus, it also encountered challenges in forecasting demand surges, occasionally pushing capacity to 152% and driving up operational costs.
To mitigate these fluctuations, the laundry operation focuses on:
Strategic Customer Selection Equipment Expansion Prioritizing larger, stable accounts in hospitality and healthcare over smaller, labor-intensive clients. Ongoing phased installations slated to raise capacity to 55+ tons/day by year-end.
Operational Reach