Siemens lands major gas-turbine manufacturing, repair center contract in Saudi Arabia

Source: Siemens AG

Siemens AG has revealed plans to establish a manufacturing and service facility in the Kingdom of Saudi Arabia. The manufacturing facility will include the local production of gas turbines and rotating equipment, a repair workshop and service facilities for the Saudi Arabian and Middle East market. The new center will be located in the Eastern Province. It is planned to be operational 18 months after final permissions and government approvals. When launched the manufacturing hub will create many job opportunities and be a home to both Saudi and international experts.

“The establishment of this manufacturing facility in the Kingdom of Saudi Arabia is a natural progression of our historic relationship with the country,” says Peter Loescher, President and Chief Executive Officer of Siemens AG. “The center will be state-of-the-art and produce the latest and sustainable technology. Thus, the center will be both a job machine and a center of excellence for engineering.”

The investment decision was announced while Peter Loescher was meeting with Khalid A. Al-Falih, President & CEO Saudi Aramco and Ali S. Al Barrak, President & CEO Saudi Electricity Company, and other Senior Executives of Saudi Aramco, and Siemens in Saudi Arabia last week.

Siemens is committed to gradually create more than 1000 jobs at the new factory. It is estimated that in the wider context approximately 3000 indirect jobs will be created in the Eastern Province, where the factory will be constructed. Siemens intends to give the training and education of young Saudis a further boost by building up technology know-how via vocational training based on the German concept. This proven and successful concept includes theoretical courses and applied “on the job” apprenticeship. 

Khalid A. Al-Falih, President & CEO Saudi Aramco says of the investment plans: “Siemens has a stellar global reputation for their technology and innovation culture. They have worked with Saudi Aramco and the Kingdom and have contributed to Saudi Arabia’s development through their products and services over many decades. Their track record in our country spans many fields ranging from power generation to health care to various aspects of oil and gas production and processing, and I am convinced that the establishment of a manufacturing hub and the creation of high-quality jobs will make Saudi Arabia a significant hub for technological excellence.”

“We are proud to continue our successful history in Saudi Arabia with this outstanding project,” says Wolfgang Dehen, CEO of the Energy Sector Siemens AG. “The country and the region are developing fast. There is a clear demand for sustainable and efficient energy as well as for the ramp up of technology know-how and positions for ambitious young people.”

“The Kingdom of Saudi Arabia is pushing to establish latest technologies and to develop specialist and engineering knowledge for the power industry in the Kingdom. To engage with a global innovation leader such as Siemens will assist the Kingdom to make best use of its natural resources and to realize its vision of a knowledge society. This commitment by Siemens will strengthen the partnership between the two companies”, explains Ali S. Al Barrak, President & CEO Saudi Electricity Company.

Mr. Abdulrahman F. Al-Wuhaib, Senior VP Operations Services, Saudi Aramco, mentioned that this is an important milestone on two strategic fronts for Saudi Aramco. On the one hand it supports the corporate strategy to increase local participation in the Company’s procurement activities where Siemens and Saudi Aramco recently announced a corporate procurement agreement (CPA). This agreement forms another corner stone of the intensive and progressive business relationship developing with Saudi Arabian companies. On the other hand, Siemens’ involvement brings the world’s best technologies to bear toward the company’s efforts to improve the Kingdom’s energy efficiency and reduce energy intensity.



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