Siemens AG has revealed plans to establish a manufacturing and service facility in 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 centre, to be located in the Eastern Province, 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, a Siemens statement said.

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

The investment decision was announced while Loescher was meeting with Khalid A Al Falih, president and CEO, Saudi Aramco, and Ali S Al Barrak, president and CEO, Saudi Electricity Company, and other senior executives of Saudi Aramco and Siemens in Saudi Arabia.

Siemens is committed to creating gradually more than 1,000 jobs at the new factory. It is estimated that in the wider context approximately 3,000 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.

Officials commend plan
Al Falih 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.”

Al Barrak commented: “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.

Engaging with a global innovation leader such as Siemens will assist the kingdom to make the best use of its natural resources and to realise its vision of a knowledge society. This commitment by Siemens will strengthen the partnership between the two companies.”

Abdulrahman F Al Wuhaib, senior vice president for operations services, Saudi Aramco, remarked that the project was an important milestone on two strategic fronts for Saudi Aramco. On the one hand it supported the corporate strategy to increase local participation in Saudi Aramco’s procurement activities (Siemens and Saudi Aramco recently announced a corporate procurement agreement) and, on the other hand, Siemens’ involvement brought the world’s best technologies to bear toward the company’s efforts to improve the kingdom’s energy efficiency and reduce energy intensity.