- TOKYO: Japan’s Hitachi Ltd has signed a deal with Saudi Arabian oil giant Saudi Aramco to supply compressors to the company’s oil and gas plants, the Nikkei business daily said.
Under the agreement, Hitachi Plant Technologies Ltd will suggest compressor technology to Aramco at the planning stage of the project and the Japanese company’s engineering unit will also be granted access to information necessary for maintenance, the paper said.
Saudi Aramco has similar deals with three European and US compressor manufacturers, including General Electric Co and Siemens AG, the Nikkei reported.
Hitachi, which is the first Japanese concern to enter such a deal, will now be able to compete at par with its European and US rivals, the paper said.
Saudi Aramco’s oil and natural gas plants use around 10 compressors, with a single order expected to bring in 10-20 billion yen ($125-$249 million) in sales for Hitachi, the business daily reported.
Japan’s largest industrial electronics company hopes its cooperation in compressors may subsequently result into orders for other plant equipment, such as turbines and motors as well, the Nikkei said.
Hitachi will establish a maintenance base in Saudi Arabia this fiscal year as it sees demand growing and aims to double its compressor operations from current levels to 60 billion yen in fiscal 2015, including plant servicing and parts replacement, the newspaper reported.

