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Siemens Energy inaugurates region’s first one-stop-shop for energy industry

The facility localises the energy value chain in Saudi Arabia under one roof and is built with an investment of more than 100 million Euros

Siemens Energy completed the expansion of its hub in Dammam, increasing its local capabilities in the energy industry. The facility, which now covers significant parts of the energy value chain, is the largest of its kind in the region and is ready to support neighbouring countries.

Prince Abdulaziz bin Salman bin Abdulaziz Al Saud patronised the inauguration ceremony and said: “We’re driven by a supreme will, keen on achieving the localisation and content targets that are sought by the vision of the Crown Prince, who pays great attention to the concepts of local content. We strive to empower the energy sector.”

Saudi Arabia’s demand for electricity is rising with the growing population of around 34 million. The Kingdom faces a pressing demand for power that is estimated to grow over 30% to 120 gigawatts this decade.

“The technology delivered by this facility will support the country in its push for sustainability and decarbonisation amid an expanding energy industry,” said Mahmoud Sulaimani, Managing Director of Siemens Energy in Saudi Arabia.

“We are proud that this facility is a centre of excellence which enables us to raise the skills of young Saudis and serve the energy value chain inside the Kingdom.”

After producing the first “Made in KSA” gas turbine in 2016, Siemens Energy has continued to invest in the facility and has increased its manufacturing and assembling capabilities to include compressor trains, water solution packages, process automation solutions, additive manufacturing capabilities, as well as rotor assembly and repair.

The hub was expanded further with the goal of covering all the services required for the product life cycle in the Kingdom while supporting low emission power generation and decarbonisation of industrial processes.

Now the 75,000 square meter industrial hub, which houses around 300 employees, has supplemented its manufacturing capacity with a fully integrated service value chain that includes technologically advanced repairs. This latest addition enables the hub to repair and overhaul equipment that would have otherwise been sent overseas, reducing service time and cost, and supporting in Kingdom value.

Its advanced service workshop enables any kind of rotating equipment to be serviced, covering general inspections, regular repairs, modifications and upgrades as well as 24/7 emergency servicing.

The hub’s new Power Diagnostic Centre (PDC) is connected to the Siemens Energy Gas Turbine fleet in Saudi Arabia. The PDC collects, analyses and stores operational data to proactively identify optimisation potential in operating power plants and monitors performance using state of the art AI solutions. This digital service increases turbine availability, reliability and reduces cost by avoiding forced outages.

Siemens Energy will continue to invest in this facility. It has already invested more than 100 million Euros.

Located in Modon 2nd Industrial City, the SEDH is designed to manufacture a combination of up to 10 heavy-duty Gas Turbines and around 40 Compression Packages annually. Having delivered 26 compressor trains for strategic Saudi projects already, the facility will deliver more for other projects in the Kingdom over the next few years.

The new admin building also houses a training centre for its customers’ operation and maintenance teams. It has several modern training rooms with state-of-the-art digital infrastructure to support efficient learning of complex content. The area is surrounded by a creativity lounge, a laboratory with an additive manufacturing printer and a technical library.

The supplier development program at SEDH is part of the Siemens Energy initiative to increase local content. Siemens Energy works with local suppliers to help them meet international standards and enhance the in-country supply chain.