ECONOMY

Saudi Arabia confirms General Electric deals worth $2 billion

With a presence of over 80 years, three offices and seven facilities, Saudi Arabia accounts for the largest GE workforce in the Middle East. (AFP)

Saudi Arabia has entered into agreements with General Electric (GE) with $2 billion as part of the Saudi Vision 2030 plan.

GE is also manufacturing heavy duty gas turbines for the Saudi Electricity Company (SEC). This is part of the contract from SEC for the EPC contract for gas turbine services for its Waad Al-Shamal combined cycle power plant project.

GE’s 7F.05 heavy duty gas turbines bring flexibility to the Waad Al-Shamal plant with a 10-minute start time to an 80 percent load.

They can accommodate a wide range of fuels lending greater flexibility to operations while providing customers with lower fuel costs compared to previous technology.

“The localized manufacturing will also help build a local talent pool of Saudi professionals and develop more local suppliers and SMEs,” said Zaher Ibrahim, CEO, GE Oil & Gas Saudi Arabia.

All 12 of the gas compression trains, including the highly efficient aeroderivative turbines, are manufactured at GEMTEC, which now has over 500 employees, 70 percent of them Saudi technical professionals. Over the past two years, GEMTEC has also evolved as a strong supporter of the Saudi SME sector.

In 2014, 12 percent of components for the gas turbines being manufactured at GEMTEC were supplied by local SMEs.

These included base plates, battery compartments, batteries and small machine parts.

In 2015, the contribution of Saudi SMEs to GEMTEC increased to 21 percent with an even wider spectrum of ‘Made in Saudi’ products such as inlet ducts, exhaust stacks and control compartments.

“We are committed to strengthening localized manufacturing of high-end industrial equipment in the Kingdom. It supports the goals of the Saudi Vision 2030 to build the Kingdom’s manufacturing capabilities, create new jobs and support SMEs,” said Mazin Albahkali, GE’s VP of Strategic Accounts for Saudi Arabia.

“The in-country value generated through the localized manufacturing, led by Saudi professionals, is long-term and sets the strong foundation for more manufacturing initiatives by GE in the Kingdom,” he added.

With a presence of over 80 years, three offices and seven facilities, Saudi Arabia accounts for the largest GE workforce in the Middle East with over 2,000 employees driving the Aviation, Healthcare, Oil & Gas, Power and Transportation businesses.

This article first appeared in the Saudi Gazette on May 23, 2016.

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Last Update: Monday, 23 May 2016 KSA 13:11 - GMT 10:11
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Saudi Arabia confirms General Electric deals worth $2 billion
With a presence of over 80 years, three offices and seven facilities, Saudi Arabia accounts for the largest GE workforce in the Middle East
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