Global firms in deal to set up key manufacturing plants at Spark
RIYADH, 17 hours, 39 minutes ago
Three global groups - MAN Industries and Thermocables (both from India) and Hong Kong-based Dalipal Holdings have signed agreements with King Salman Energy Park (Spark) to set up steel pipes and cable manufacturing facilities within the mega industrial development in Saudi capital Riyadh.
This comes as part of SAR3 billion ($798 million) letters of intent signed by Spark, a key industrial ecosystem in Saudi Arabia, on the sidelines of Adipec 2024, the world’s largest and most inclusive gathering for the energy industry.
A global leader in the line pipe sector, MAN Industries said under this pact, it will be setting up a 360,000 sq m facility at Spark.
The facility will produce large diameter carbon steel pipes and offer anti-corrosion coatings, boosting the metal processing sector in Saudi Arabia, remarked its Projects Vice President Hardik Shah.
Thermocables, a leading manufacturer of specialty cables, will focus on quality cable production at its 10,000 sq m Spark manufacturing hub, stated its Chairman Chetan Ghurka.
As per the deal, Dalipal Holdings is set to produce seamless steel pipes at its Spark facility. This plant, which will occupy over 1,000,000 sq m, aims to cater to the kingdom’s energy services sector, said its Chairman Meng Fanyong.
In addition to these three, leading entities BioChem, a chemical manufacturing company and Saudi-based Primetech were also part of today's Spark deal.
BioChem will be setting up a state-of-the-art facility at Spark to produce xanthan gum, a substance used to reduce the structural strength and viscosity of substances such as drilling fluid, stated its CEO Mohammed Hayef.
In a major boost to local manufacturing, Primetech International Company will be producing blow out preventors and manifolds, enhancing the kingdom’s 'Saudi Made' brand worldwide, said its with Operations Manager, Kiran Kumar.
Primetech is a leading manufacturer of a wide range of oilfield equipment in Saudi Arabia.
In a letter of intent signed with Kumar, Primetech said it will aim to expand globally, in line with the kingdom’s ambitions to diversify its role in the energy services sector.
On the key agreements, Mishal Al Zughaibi, the President and CEO of Spark, said: "We are proud to welcome these industry leaders as tenants at Spark. The letters of intent signed today underscore our commitment to fostering industrial growth and connecting tenants to the Saudi energy sector."
"This expansion further solidifies Spark's position as a leading regional industrial ecosystem, driving innovation and sustainable growth," stated Al Zughaibi.
According to Spark, these agreements will generate over 3,000 direct and indirect jobs and significantly expand manufacturing capabilities at the mega Saudi industrial development at maturity.
"These signings represent a significant milestone for Spark as continues to connect the world to opportunities in the Saudi energy sector and beyond and support the goals of Vision 2030 to localize the energy value chain," noted Al Zughaibi.
The state-of-the-art facilities will reinforce Spark’s position as a leading regional player facilitating the localization of the energy supply chain, he added.-TradeArabia News Service
