From an almost total dependence on imports, from pins to plant, much progress has been made to sustain the oil and gas industry on a local basis in the Middle East in the last 50 years.
Running the length and breadth of the Gulf Cooperation Council (GCC) states are pipelines in refineries, process plants, storage terminals and loading piers. And invariably, each pipe has a flange at both ends.
Flanges are typically made from forgings. For want of significant forging manufacturing facilities in the GCC, such flanges - made of carbon steel, alloy steel, stainless steel or specialty metals and alloys - are imported by the millions from all over the world. After careful analysis and consideration, Precision Forgings was conceived, with Czech collaboration, to initially cater to indigenous requirements and reduce the need for imports, said a company spokesman.
The plant is under construction on a 30,000 sq m plot in Dammam's Second Industrial City in the Eastern Province of Saudi Arabia, with installation of forging press lines and machining lines currently ongoing.
State-of-the-art equipment and handling facilities have started arriving from Europe which, when erected and commissioned by June next year, will be the only precision forging facility of its kind in West Asia.
The safety equipment under installation at the plant and the procedures adopted in it will, according to the company, meet and, in some instances, exceed statutory requirements.
The company's quality policy provides for the implementation of ISO9001:2000 and other international standards such as API, BVQI and standards as may be laid down by its customers.
Other than oil and gas industries and their related downstream petrochemical and basic industries, industrial development is still at the nascent stage. As industrialisation gains momentum, the demand for forgings and/or components machined from forgings will grow.
The promoter - Al Suwaidi Group - has a vision to emerge as the single largest producer of steel forgings in the GCC, while maintaining the highest international standards.
For Precision Forgings - led by managing director Khalid Al Suwaidi - this translates into a corporate mission to be the single largest producer of steel forgings in the GCC, while maintaining the highest international standards.
By meeting these standards, Precision Forgings says it will be well placed to cater to the needs of major oil and gas projects being developed in Saudi Arabia.
''Our initial products will be carbon steel, alloy steel and stainless steel flanges, which find significant application in large oil and gas projects,'' said the spokesman.
''We are confident of having our facilities approved for supplies to such large projects,'' he added.
Added to this will be Precision Forgings' ability to offer competitive prices, proximity and therefore timely supplies.
Thus, the company is hoping to gain 'preferred supplier' status from major oil and gas companies operating in the Kingdom.
From the present modest capacity of 12,000 tonnes per year, the layout already provides for expansion to 30,000 tonnes with only the primary equipment to be sourced.
