The factory, which would make gas turbines and rotating equipment, would start operations 18 months after government approvals and permissions.

A Siemens statement said the factory plans followed a meeting of Siemens Chief Executive Peter Loescher, Saudi Aramco CEO Khalid Al-Falih and Saudi Electricity Company CEO Ali Al-Barrak.

When launched, the manufacturing hub will create many job opportunities and be a home to both Saudi and international experts.

Siemens is committed to gradually creating more than 1,000 jobs at the new factory, according to the statement.

CEO Loescher said the state-of-the-art center would produce the latest and sustainable technology.

Thus, he said the center would be both a job machine and a center of excellence for engineering.

The Aramco CEO pointed out that Siemens had worked with Saudi Aramco and the Kingdom and had contributed to Saudi Arabia’s development through their products and services over many decades.

“Their track record in our country spans many fields ranging from power generation to health care to various aspects of oil and gas production and processing, and I am convinced that the establishment of a manufacturing hub and the creation of high-quality jobs will make Saudi Arabia a significant hub for technological excellence,” he said.

Al-Barrak said the commitment by Siemens would strengthen the partnership between the two companies.

“To engage with a global innovation leader such as Siemens will assist the Kingdom to make best use of its natural resources and to realize its vision of a knowledge society,” he said.

Abdulrahman F. Al-Wuhaib, senior VP operations services, Saudi Aramco, said the agreement formed another cornerstone of the intensive and progressive business relationship developing with Saudi Arabian companies.

“On the other hand, Siemens’ involvement brings the world’s best technologies to bear toward the company’s efforts to improve the Kingdom’s energy efficiency and reduce energy intensity,” he added.

Wolfgang Dehen, CEO of the energy sector of Siemens, pointed out that there is a clear demand for sustainable and efficient energy as well as for the ramp up of technology know-how and positions for ambitious young people.

“The establishment of this manufacturing facility in Saudi Arabia is a natural progression of our historic relationship with the country,” he added.

Siemens said it intends to give the training and education of young Saudis a further boost by building up technology know-how via vocational training based on the German concept.

This proven and successful concept includes theoretical courses and applied “on the job” apprenticeship.

It is estimated that in the wider context around 3000 indirect jobs will be created in the Eastern Province.