Alstom and Arabian Bemco to Set up a Joint Venture to Manufacture Power Generation Equipment for the Middle East
December 02 2013 - 8:03AM
Business Wire
Regulatory News:
Alstom (Paris:ALO) and Arabian Bemco Contracting Co. Ltd have
signed an agreement to create a joint venture (JV) company, Alstom
Arabia Power Factory Ltd, which will establish a world-class
manufacturing facility in the Kingdom of Saudi Arabia (KSA) for
power generation components, primarily heat recovery steam
generators (HRSGs) which are used in combined cycle and
cogeneration applications to increase thermal cycle efficiency and
minimise fuel consumption. In the second phase, the partners
envision expanding the scope of the factory to manufacture other
power generation equipment.
The initial investment will be worth approximately €50 million
(over 200 million Saudi Riyals). This operation reflects Alstom's
ongoing commitment to its industrial presence in KSA and offers
strong market opportunities across the Middle East. The factory
will be located in King Abdullah Economic City, North of Jeddah,
and will train and employ more than 500 Saudi nationals.
With more than 750 HRSGs installed globally Alstom is a world
leader in the engineering and supply of HRSGs for all gas turbine
types, while Arabian Bemco is an experienced turnkey contractor and
local manufacturer within KSA. The two companies have already
successfully worked together, including on the Riyadh PP12
steam-tail project bid, which was secured last year.
The joint venture will be a limited liability company
incorporated under the laws of KSA with a registered office in
Jeddah. Both Alstom and Arabian Bemco will take a 50% stake.
Following technology transfer, the JV will be the exclusive
licensee of Alstom HRSG technology in KSA. It will afford Alstom
and Arabian Bemco a strong local base across the Middle Eastern
region, which represents around 25% of the global market. In
addition to the Saudi market, this facility will also cover key
territories such as Iraq, Bahrain, Kuwait, Qatar, Oman, United Arab
Emirates, Yemen, Jordan, Syria, Lebanon and Egypt.
Demand for gas-fired power plants is on the rise in the Middle
East and KSA is also 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 presence and logistics support offered by
Arabian Bemco. “Having successfully executed some of SEC’s most
prestigious power projects in KSA 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. We are rapidly expanding our presence in the Middle East
and the JV will enable both partners to serve an increasingly
important power generation market with technologically advanced and
highly efficient equipment,” said Henry M.Sarkissian, Chief
Executive Officer, Arabian Bemco.
Philippe Cochet, President of Alstom Thermal Power underlined
that “The creation of this joint venture is another step towards
increasing Alstom’s industrial presence in the Kingdom of 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 programme with SEC
to further create employment and develop young talent in this
country.”
About AlstomAlstom is a global leader in the world of
power generation, power transmission and rail infrastructure and
sets the benchmark for innovative and environmentally friendly
technologies. Alstom builds the fastest train and the highest
capacity automated metro in the world, provides turnkey integrated
power plant solutions and associated services for a wide variety of
energy sources, including hydro, nuclear, gas, coal and wind, and
it offers a wide range of solutions for power transmission, with a
focus on smart grids. The Group employs 93,000 people in around 100
countries. It had sales of over €20 billion and booked close to €24
billion in orders in 2012/13.
About Arabian BemcoArabian Bemco Contracting Co. Ltd.
(BEMCO) is one of the top leading power and industrial EPC turnkey
contractors in the Kingdom of Saudi Arabia with over 24,000 MW
installed power generation capacity in power plants. With in-house
engineering capability Arabian Bemco’s competence enables it to
design, procure, construct, fabricate, erect, commission, operate
and maintain power plants with different technologies that are in
line with the growing demand of the Kingdom. BEMCO has undertaken
some of the largest and most challenging turnkey projects in KSA
and the region, where Arabian Bemco has successfully completed
Power Plant #9 (PP9), the world’s largest grass root power plant
with 60 turbines as well as the world’s largest combined cycle
power plant, PP10, with 40 gas turbines, 10 steam turbines and 40
HRSGs in Riyadh, KSA on an EPC basis. Other capabilities include
the construction of water treatment plants, fuel storage
facilities, fire fighting systems, compressed air systems, cooling
water systems (CCWS & OCWS), auxiliary steam boiler systems,
turbine inlet air cooling systems, crude oil pipelines and large
refrigeration and district cooling plants and civil works.
Press ContactsAlstomVirginie Hourdin, Claire Biau
- Tel.: +33 1 41 49 21 36 / 39
95virginie.hourdin-bremond@chq.alstom.com /
claire.biau@chq.alstom.comSapna Lalwani (Alstom Thermal Power)Tel.:
+41 56 556 33 42 | sapna.lalwani@power.alstom.comMajed Almajed
(Middle East Media Relations) –Tel +971 562168305|
majed.almajed@crn.alstom.comArabian BemcoEmad Ghandourah,
Hrag Sarkissian – Tel.: +966-12-2279999/7111emad@bemco.net /
hrag.sarkissian@bemco.netorInvestor
RelationsAlstomDelphine Brault, Anouch Mkhitarian – Tel.
+33 1 41 49 26 42/25 13delphine.brault@chq.alstom.com,
anouch.mkhitarian@chq.alstom.comArabian BemcoGhassan Basna ,
Tel. +966-12-2279900ghassan@bemco-ipp.comorWebsite:
www.alstom.com,Website : www.arabianbemco.com
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