Saudi Aramco’s In-Kingdom Total Value Add (IKTVA) program has allowed for further impetus with GE Oil and Gas breaking ground on a new Multi-Modal Manufacturing Center at MODON in Dammam.
Abdulaziz A. Al Abdulkarim, Saudi Aramco’s vice president of Procurement and Supply Chain Management, and other members of executive management recently joined with GE Oil and Gas management for an official groundbreaking ceremony.
The new phase development builds upon the expansion of GE’s Gas Pressure Control manufacturing facility that was inaugurated late last year and comes with a promise of creating 100 jobs during the startup stage, with an 80% rate of Saudization.
When constructed, the new 18,000 m2 center will have the capability to manufacture and service the entire range of GE’s oil and gas portfolio, including Artificial Lift, Digital Solutions, Downstream Technology Solutions, Turbomachinery Solutions and Subsea Systems.
GE Oil and Gas promises that the new center will bring added “Made in Saudi” capabilities, serving as a manufacturing, assembly, repair, services, and training facility for advanced gas turbines and mechanical drives.
Al Abdulkarim said the IKTVA program, launched by Saudi Aramco last December, is already making a positive impact.
“We are confident that the IKTVA initiative is steadily gaining momentum. As partners such as GE Oil and Gas are demonstrating, IKTVA is a ‘win-win’ proposition for companies able to build a deep and lasting relationship with the Kingdom by extending the opportunity to localize our materials and services procurement needs, all while supporting the economic growth, job creation and skills development of Saudi Arabia.”
GE Oil and Gas president and CEO Lorenzo Simonelli said: “With over 80 years of partnership in the Kingdom, we are committed to strengthening our localized manufacturing service and repair capabilities, and to building our already strong local talent pool. The new center brings cross-functional synergies to our operations in the Kingdom and will serve as a one-stop center for our customers in Saudi and the region.”
The new facility will also deliver the services of the recently acquired Alstom Grid business, enabling it to offer a complete portfolio to customers.
Recently, GE Oil and Gas completed the first six high-efficiency gas compression trains manufactured in Saudi Arabia. These will be used in Phase I of Saudi Aramco’s Master Gas System expansion project in the Kingdom.