SIEMENS, one of the biggest players in the Gulf region, has booked a plot of land in Dammam, Saudi Arabia, to set up a large centre for manufacturing gas turbines, compressors and heat recovery steam generators as well as to have repair shops and service facilities for the Saudi market.

The German giant signed a land lease agreement with the Saudi Industrial Property Authority (Modon) under which it will lease a 220,000 sq m plot equivalent to about 30 soccer fields in Dammam’s Second Industrial City. A Siemens statement said it would invest a three-digit million-dollar amount in the hub whose construction is due to start in May of this year. On completion in late 2013, the centre will create job opportunities for young Saudis and serve as a technological hub for knowledge transfer of the latest Siemens Energy technology.

It may be recalled that Siemens, in association with Saudi Petroleum Services Polytechnic (SPSP), already offers a two-year technical apprenticeship programme provided by SPSP followed by one year of on-the-job training at Siemens. The first intake of Saudi students started in December 2011.

Dr Tawfiq Al Rabea, Saudi Minister of Commerce and Industry, said: “This is one of many mega-projects that the industrial cities have successfully attracted and that will deliver added value to the national economy and provide local sources for producing energy in addition to aiding our efforts in localising the workforce in this project. We are very pleased with the company’s efforts to train young Saudis and qualify them to work on the project in order to achieve true transfer of technical knowledge since citizens of Saudi Arabia have both the competence and talent that enable them to work with the latest international technologies.”

Siemens’ Energy Sector made a profit of more than $5.4 billion in 2011

COMMITMENT

Dr Roland Fischer, CEO of Siemens Energy’s Fossil Power Generation division, commented: “As a long-term partner to Saudi Arabia, we are committed to generating jobs locally and enabling the transfer of knowledge. With the establishment of a local manufacturing hub and the creation of highly-qualified jobs here, we will make a significant contribution to the further development of Saudi Arabia.”  The division employs more than 1,850 people in its Riyadh headquarters and in Jeddah, Dammam, Khobar and Dhahran. It will be transferring all the necessary know-how that is required in order to run an assembly site and later a manufacturing facility.

Arja Talakar, CEO of Siemens Saudi Arabia, said the factory in Dammam was another milestone in Siemens’ continuous commitment to Saudi Arabia and that it would be instrumental in the transfer of technological expertise and development of local Saudi talents.

The director general of the Saudi Industrial Property Authority, Saleh Al Rasheed, remarked: “The committee has provided industrial lands in all regions of the kingdom, now reaching up to 110 million sq m of developed industrial lands. The committee seeks to develop the industrial cities and provide facilities and services to create an environment attractive to investors. We thank Siemens for the establishment of this project in the Second Industrial City in Dammam.”

CONTRIBUTION

Siemens activities in Saudi Arabia date back to the early 1930s when the country imported its first power plant equipment. From the very beginning, Siemens has made a significant contribution to the development of the country’s infrastructure. One third of the power used in the kingdom is generated and distributed by Siemens. Today, Siemens in Saudi Arabia is committed to supporting the careers of young Saudis through targeted professional recruitment and training programmes. The company also proactively supports the government’s efforts to effect social change in the country by recruiting Saudi women.

In fiscal 2011 Siemens’ Energy Sector had revenues of €27.6 billion ($36.3 billion) and received new orders totalling approximately €34.8 billion ($46.2 billion). It posted a profit of more than € 4.1 billion ($5.45 billion).