Alstom and Arabian Bemco to set up manufacturing facility in Saudi Arabia

gas-hrsg-for-other-turbine-cgiFrance’s Alstom and Arabian Bemco Contracting have signed a joint venture agreement to set up a power generation components manufacturing facility in Saudi Arabia, which will serve as its hub in the Middle East

With an initial investment of US$69mn, the joint venture company will be known as Alstom Arabia Power Factory.

According to Alstom, the factory will be located in King Abdullah Economic City in Jeddah and would initially manufacture heat recovery steam generators (HRSGs) which are used in combined cycle power plants and in cogeneration applications.

In the second phase of the project, the facility will produce other power generation components and equipment, the company said.

Alstom said the joint venture will be the exclusive licensee of its HRSG technology in the Kingdom.

Until now, the company has installed 750 HRSGs for power plants around the world.

Alstom president, thermal power, Philippe Cochet, said, “Demand for gas-fired power plants is on the rise in the Middle East. Countries like Saudi Arabia are moving towards gas-fired power generation. The joint venture will be well equipped to cater to this demand by combining the product expertise and technological excellence of Alstom with the local support offered by Arabian Bemco.”

Arabian Bemco is a turnkey contractor and manufacturer in Saudi Arabia.

The company's chief executive officer Henry Sarkissian said, “We are rapidly expanding our presence in the Middle East and this joint venture will enable both partners to serve an increasingly important power generation market, with highly efficient equipment.”



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