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Alstom enters JV to build $64m factory in KSA

Factory to manufacture heat recovery steam generators

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 Alstom has installed more than 750 heat recovery steam generators globally
Alstom has installed more than 750 heat recovery steam generators globally

French engineering giant Alstom has entered into a joint venture (JV) with Arabian Bemco Contracting Co. Ltd to build a $64m (SAR 240m) manufacturing facility near Jeddah, Saudi Arabia, which will produce power generation components.

Alstom Arabia Power factory will focus primarily on manufacturing heat recovery steam generators (HRSGs) which are used in combined cycle and cogeneration applications to increase thermal cycle efficiency and minimise fuel consumption.

Following the establishment of the factory, a second phase to the partnership is planned which will see the scope of the factory expanded to other power generation equipment.

The factory is to be located in King Abdullah Economic City, north of Jeddah, and will train and employ hundreds of Saudi nationals from the outset.

“Having successfully executed some of SEC’s (Saudi Electrcity Company’s) most prestigious power projects in Saudi Arabia, including the world’s largest combined cycle power plant, Arabian Bemco is one of the leading engineering, procurement and construction (EPC) contractors in the region,” said Henry M. Sarkissian, chief executive officer, Arabian Bemco.

“We are rapidly expanding our presence in the Middle East and the JV will equip both partners to serve an increasingly important power generation market with technologically advanced and highly efficient equipment,” he added.

Philippe Cochet, President of Alstom Thermal Power, added: “The creation of this joint company is another step towards increasing Alstom’s localisation in Saudi Arabia. Working with reputable local partners such as Arabian Bemco is key to our growth strategy in the Middle East. This announcement follows other initiatives that Alstom has undertaken recently such as launching a services workshop and a training program with SEC to further create employment and develop young talent in this country.”

The JV will be a limited liability company incorporated under the laws of Saudi Arabia with a registered office in Jeddah.

Alstom, which has installed more than 750 HRSGs globally, and Arabian Bemco, a turnkey contractor and local manufacturer within Saudi Arabia, will each take a 50% stake.

The two companies have already worked together successfully on projects such as the Riyadh PP12 steam-tail project bid, which was secured last year.

Demand for gas-fired power plants is on the rise in the Middle East, with Saudi Arabia also moving towards gas-fired power generation.

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