Land lease with Saudi Industrial Property Authority in Dammam Industry City
Siemens, the global powerhouse in electronics and electrical engineering operating in the energy, infrastructure, industry and healthcare sectors, today signed a land lease agreement with Saudi Industrial Property Authority for the construction of a manufacturing and service facility in Dammam that will create qualified jobs and serve as a technology hub for knowledge transfer. Under today's agreement, Siemens Energy will lease a 220,000-square-meter plot of land - equivalent to about 30 soccer fields - in Dammam Industrial City and invest a three-digit million dollar figure in building a center for the local manufacturing of gas turbines, compressors and heat recovery steam generators as well as repair shops and service facilities for the Saudi market.
Construction on the project is due to start in May 2012. Once completed in late 2013, the center will create job opportunities for young Saudis and serve as a technological hub for knowledge transfer of the latest Siemens Energy technology. Siemens, in association with Saudi Petroleum Services Polytechnic (SPSP) already offers a two-year technical apprenticeship program provided by SPSP, followed by one year of on-the-job training at Siemens. The first intake of 40 Saudi students started in December 2011.
The signing ceremony, held in Jeddah, was attended by H.E. Dr. Tawfiq al-Rabea, Saudi Arabia's Minister of Commerce and Industry, Dr. Roland Fischer, CEO of Fossil Power Generation at Siemens Energy, Amin Al-Afifi, CEO of E.A. Juffali and Brothers, and Arja Talakar, CEO of Siemens Saudi Arabia, and Eng. Saleh Al-Rasheed, Director General of Modon with the participation of high-ranking officials and senior management of all involved parties.
H.E. Dr. Al-Rabea, Minister of Commerce and Industry, said: "This is one of many mega-projects that the industrial cities have successfully attracted and that are due to deliver added value to the national economy, provide local sources for producing energy, in addition to aiding our efforts in localizing the workforce in this project. We are very pleased with the company's efforts to train young Saudis and qualify them to work on the project in order to achieve true transfer of technical
knowledge since citizens of Saudi Arabia have both the competence and talent that enable them to work with the latest international technologies."
"As a long-term partner to Saudi Arabia, we are committed to generating jobs locally and enable the transfer of knowledge. With the establishment of a local manufacturing hub and the creation of highly-qualified jobs here, we will make a significant contribution to the further development of Saudi Arabia," said Roland Fischer, CEO of Siemens Energy's Fossil Power Generation division.
Siemens, which employs more than 1,850 people in its Riyadh headquarter, Jeddah, Dammam, Khobar and Dhahran, will be transferring all the necessary know how that is required in order to run an assembly site and later a manufacturing facility.
Arja Talakar, CEO of Siemens Saudi Arabia said: "The factory in Dammam is another milestone in our continuous commitment to the Kingdom of Saudi Arabia. The facility will be instrumental in the transfer of technological expertise and development of local Saudi talents."
Director General of Saudi Industrial Property Authority Saleh Al-Rashid commented: "The committee has provided industrial lands in all regions of the Kingdom, now reaching up to 110 million square meters of developed industrial lands. The committee is currently seeking to develop the industrial cities and provide facilities and services to create an environment attractive to investors, and to international and local companies, and we thank Siemens for the establishment of this project in the Second Industrial City in Dammam."
-Ends-
Siemens in Saudi Arabia: As a world leader in industry, energy and healthcare, Siemens has grown to hold leading positions in these sectors in the Kingdom with more than 1,800 employees countrywide. Siemens activities in Saudi Arabia date back to the early 1930s when the country imported its first power plant equipment. From the very beginning Siemens has made a significant contribution to the development of the country's infrastructure. One third of the power used in the Kingdom is generated and distributed by Siemens. Today, Siemens in Saudi Arabia is committed to supporting the careers of young Saudis through targeted professional recruitment and training programs. The company also proactively supports the government's efforts to effect social change in the country by recruiting Saudi women.
The Siemens Energy Sector is the world's leading supplier of a complete spectrum of products, services and solutions for power generation in thermal power plants and using renewables, power transmission in grids and for the extraction, processing and transport of oil and gas. In fiscal 2011 (ended September 30), the Energy Sector had revenues of EUR27.6 billion and received new orders totaling approximately EUR34.8 billion and posted a profit of more than EUR4.1 billion. On September 30, 2011, the Energy Sector had a work force of more than 97,000. Further information is available at: www.siemens.com/energy.
© Press Release 2012
