RIYADH: GE is charting a new era of growth in Saudi Arabia, led by its Industrial Internet solutions that aim to achieve transformational growth for its partners.

As it evolves as a digital industrial company, GE is bringing its advanced solutions, focused on promoting local manufacturing, to the Kingdom.

This is underlined by the GE Manufacturing Technology Center (GEMTEC) in the Eastern Province, which GE says is the largest and most advanced of its kind.

In addition to serving its customers in Saudi Arabia, the center also serves Europe and Asian markets.

Opened in 2011, GEMTEC is one of GE’s biggest investments in the Kingdom aimed at boosting the Kingdom’s domestic manufacturing capabilities, says Stephen (Steve) R. Bolze, president and CEO of GE Power.

“We do repair and provide upgrades at this center. About 80 percent of the parts we produce are exported. This center is not just for Saudi Arabia. This is a manufacturing technology facility designed to be useful for Europe and Asian markets. So, it is very much global, has excellent standards, and we have been very happy with GEMTEC investment,” Bolze told Arab News in an exclusive interview in Riyadh.

GEMTEC is currently being expanded to manufacture GE’s most advanced, largest and high efficiency gas turbines, which will roll out of the Dammam facility in 2016. “So, it has been a great experience so far,” Bolze added.

Bolze, who has been with the company for 22 years, said GE has been Saudi Arabia’s very proud long-term technology partner.

With a presence of over 80 years, three offices and seven facilities, Saudi Arabia accounts for the largest GE work force in the Middle East with over 2,000 employees driving the health care, transportation, power, oil and gas, water, and aviation businesses.

Over 70 percent of GE’s work force comprises Saudi nationals, with over 50 percent of them engaged in roles related to technology and manufacturing. “I must tell you it has been a great work force for us.”

On the power side, Bolze said more than 550 GE turbines currently generate over 50 percent of Saudi Arabia’s electricity.

Bolze said Saudi Arabia is a long-term GE partner and continues to invest to offer better solutions and provide faster service.

About GE’s investments, Bolze said: “I was here three years ago in Riyadh when we announced an investment of $1 billion. I am happy to say that we have completed that; we have done that investment.”

He said: “We are very much investing now for the next 20 plus years in Saudi Arabia to help our customers and thus help the Kingdom.”

Electricity is one of the major areas in which GE will be investing and offering its solutions as Saudi Arabia’s energy needs are expected to double in the next 20 years.

“A big chunk of our investment will be used for training of Saudis and building local capability and diversity,” Bolze said.  He added that some of those engineers at GEMTEC are Saudi female engineers. 

Some Saudi trainee engineers are currently on training assignments in the US and Europe. Once they come back to Saudi Arabia, they will be able to play a role in the manufacturing and engineering sectors here.

“Basically, we aim to place Saudi Arabia ahead in key technology trends of the world.”

One of them is our $100 million investment announced 6 months ago for research and technology with emphasis on a Power Generation Hot and Harsh Center of Excellence, energy efficiency, oil and gas research, and the Industrial Internet.

“This is because Saudi Arabia is one of the best suited for such research in the world, and is investing in different types of crudes, gases, etc., and in technologies utilized in power production. So, we will undertake our research here which can be used across the world.”

Bolze said GE is opening a new monitoring and diagnostic center in the Kingdom to connect and optimize the productivity and efficiency of gas turbines.

“In other words, our investments in the Kingdom are focused on how to help double the electricity capacity in the next 20 years, how to help with training, and how to put the Kingdom in the forefront through digital transformation,” said Bolze.

Excerpts of the interview:

Q. GE is well known as a longstanding partner in Saudi Arabia’s industrial development. What is the secret of GE’s success story in this part of the world?

A. GE’s secrets of success in supporting the Kingdom in the Gulf region are three.

One of them is its long-term presence. We have been here for 80 years and we have made significant investment in localization.

Secondly, Saudis constitute over 70 percent of the Kingdom’s work force. We invest in great people who are local and in their training.

Thirdly, we make sure that we bring the best world technology solutions to Saudi Arabia.

Q. Volatile oil prices in recent months have brought about new challenges to global businesses and industrial giants? How does GE see these new developments?

A. I would say it is a volatile environment and we have to help our customers through that environment. 

We help our customers with efficiency programs; for example, if they are producing power, they should produce that in the most efficient way. 

Close to 50 percent of Saudi electricity is produced by GE technology so to that extent we can provide efficiency upgrades.

We spend a lot of time determining short-term dynamics of oil prices.

We still invest with a long-term outlook to support our partners. 

We are manufacturing the latest gas turbines here, and working with some of the customers to bring the most efficient gas turbines in the world to the Kingdom. 

We don’t want things to slow down in our long-term commitment because our investment vision is for the next 50 to 100 years.

Q. What are the challenges and opportunities witnessed or experienced by multinationals in Saudi Arabia? Can the investors be optimistic about current market conditions?

A. Saudi Arabia has a 67 percent annual electricity load growth. So, the kind of growth we see here is not witnessed in other parts of the world. With favorable prospects of doubling electricity capacity in the next 20 years, there are enormous opportunities here. You also have great customers whose investments are long-term and technology-oriented.

From GE’s perspective and other multinationals operating in the Kingdom, you have great people here. So, we can give work to them not only in the Kingdom but they can provide service to customers around the world.

Q. Can you elaborate on GE’s strategy for augmenting wind, solar and nuclear energy (renewables) in Saudi Arabia and the region?

A. All of those technologies you mentioned like solar, wind and nuclear have applications and potentials in the region.

I would say each country is a little different in terms of its potential. On the nuclear side, one of the largest nuclear plants is being built in Abu Dhabi, but that is a long-term commitment.

Q. GE focuses on promoting human capital development and job creation for skilled youth and professionals across Saudi Arabia. How is GE pursuing the Saudization program? Are Saudi women working with GE?

A. GE loves its employees. We have 2,000 employees in Saudi Arabia, 70 percent being Saudi nationals. We have female engineers too.

About 50 percent of the 2,000 employees are in engineering and manufacturing. I would say they are technically oriented.

We invest in human capital. Being committed to strengthening our Saudi work force and promoting their all-round skills, we have invested significantly in training and development initiatives. After all, training is helpful, whether it is given here or elsewhere globally.

GE has joined hands with Saudi Aramco and Tata Consultancy Services to launch the first all-female business process services center in Riyadh. The center, staffed by Saudi females, is initially serving Saudi Aramco and GE as anchor clients.

We will create up to 1,000 employment opportunities as result of this initiative.

Q. GE has been involved in several high value projects with Saudi Electricity Co. (SEC). Can you shed more light on this partnership?

A. SEC is one of our most respected companies with whom we have a long-term customer relationship.

We have lots of equipment and we do work for them offering our services.

Our partnership goes beyond technology and we always see how we can learn from each other.

GE equipment assist in the generation of over half of Saudi Arabia’s power supply, with more than 550 gas turbines installed in the Kingdom.

We are also involved with them in training programs. We had some of their executives at GE for training classes. 

We are committed to offering best quality service and best technology, and how fast we can do it is our priority.
 
Q. How important is Saudi Arabia to GE and its growth in the region?

A. Saudi Arabia is very critical to GE as also the Middle East region.

I visit Saudi Arabia every time I come to the region.

I am here personally at least twice a year.

I see some of the Saudi customers in other parts of the world at least two to three times a year. It is a global environment here.

It is very important for GE that we do work with customers here in the interest of the Kingdom and the rest of the world.

We announced an investment of $1 billion three years ago and we did that, and on top of that we have announced $100 million investment 6 months ago.

GE supports 70 customers globally in 30 countries from here. If you compare our team versus 10 years ago, they are fully empowered and localized, and they make decisions much faster for customers in the Kingdom today than 10 years ago.

We have leaders who not only grew up in Saudi Arabia but also perform global roles.

Q. How does GE provide innovative products, technology and services across Kingdom’s growing sectors?

A. Our health care business is very active here. Another big one getting attention is grid and aviation.

We have closed the acquisition of Alstom in Q4, 2015 to help our customers with a broad area investment in grid as well as some technologies such as boilers.

Q. GE has been talking about Industrial Internet. Can you explain this and how does it benefit the region, especially the Kingdom? Is this part of making GE a digital industrial company?

A. GE is transforming into a digital industrial company and our goal is to be one of the Top 10 software companies in the world by 2020.

This transformation is led by what we call the Industrial Internet, which is profoundly transforming global industry and infrastructure, connecting machines, big data analytics, and people

GE’s deep domain expertise in machines and industry, as well as our industrial scale and security, uniquely positions us at the intersection of machines and software.

We know industrial machines and businesses, and know how to build software that will best serve and optimize them.

We are bringing our digital industrial solutions to Saudi Arabia — and this will serve as the platform for our future growth in the Kingdom. An example is the Monitoring & Diagnostic Center in Saudi Arabia that will provide unprecedented insights into turbine operations.

The goal is no unplanned downtime, using a predict-and-prevent services model to customers.

Q. Could you tell us about GE Manufacturing Technology Center (GEMTEC) Phase Two and more about manufacturing H-class turbines, and what will be the outcome of this move?

A. One of the biggest investments in the Kingdom is GE Manufacturing Technology Center (GEMTEC) in Dammam, which was opened in 2011. GEMTEC is the largest advanced technology center aimed at boosting the domestic manufacturing capabilities in Saudi Arabia.

We do repair and provide upgrades at the center. About 80 percent of the parts we produce are exported. This center is not just for Saudi Arabia. 

This is a manufacturing technology facility designed to be utilized by Europe and Asian markets. So, it is very much global, has excellent standards, and we have been very happy with GEMTEC investment.

Following the recent expansion announcement, GEMTEC will manufacture GE’s most advanced, largest and high efficiency gas turbines, which will roll out of the Dammam facility in 2016. It has been a great experience so far.