GE Oil & Gas recently broke ground for a multi-modal manufacturing and service facility at their Modon (Saudi Industrial Property Authority) site in the Second Industrial City, Dammam. 

The new phase of work will build upon the recent expansion of the GE Oil & Gas Pressure Control manufacturing facility that was inaugurated in late 2015 with additional capabilities to manufacture and service the entire range of the company’s oil and gas portfolio including Artificial lift, Digital Solutions, Downstream Technology Solutions, Turbomachinery Solutions and Subsea, stated a press release.   

The new facility will serve as a manufacturing, assembly, repair, services and training facility for advanced gas turbines and mechanical drives.

Additionally, the new facility will also deliver the services of the newly acquired Alstom Grid business, whose complementary technology, installed base and talent will enable GE to provide market leading solutions for the oil and gas industry, the press release added. 

Asked what was driving this expansion in these tough economic times, Rami Qasem, president and CEO of GE Oil & Gas for the Mena region and Turkey, said: “There are a number of factors that account for the expansion of GE Oil & Gas’ operations in the kingdom, not least of which is strong domestic and regional demand. With the oil price currently depressed, national operators and companies across the Middle East are aware that they need to invest in the latest equipment and digital solutions to drive productivity and remain competitive over the longer term.

“The multi-modal manufacturing and service facility at Modon will offer them a range of new capabilities to manufacture and service the full range of their portfolios. It will act as a hub for our customers in Saudi and the wider region, enabling GE Oil & Gas to serve them with greater efficiency.”

Qasem also said that the expansion of facilities will also focus on serving customers in Saudi Arabia and the region and that this will contribute to the diversification, growth and transformation of the economy in line with the aims of the Saudi government.

The GE Oil & Gas Pressure Control manufacturing facility, the expansion of which opened in November 2015, increased output capacity to three times the original. “The new expansion phases will further build the portfolio of solutions it offers, further establishing Modon as a hub for GE Oil & Gas to serve the kingdom and the region with greater efficiency,” explained Qasem. 

Commenting on the company’s commitment to Saudi Arabia, Qasem said: “GE Oil & Gas is making sizeable investments in Saudi Arabia and will continue to do so in order to support the In Kingdom Total Value Add (IKTVA) initiative which is helping to create local employment opportunities and develop skills for the domestic workforce. Localisation is a shared priority for the Saudi government and GE Oil & Gas.

The expansion at the Modon site will create over 100 new jobs in the start-up phase with 80 per cent Saudisation, underscoring GE’s commitment to nurturing local talent and boosting the country’s economy.”

Despite the challenging environment, GE Oil & Gas hopes to continue growing its business in Saudi Arabia and across the wider Middle East. The investments that the company is making will deliver a host of tangible benefits, including new jobs, better skills and more sustainable growth.