DAMMAM: The Eastern Province-based Abahsain Group started laying the foundations on Thursday for a mechanical seal and valve facility in Dammam. The project at the Second Industrial City is being developed with US industrial giant Flowserve Corp.
“Abahsain Group and Flowserve enjoy a 40-year business relationship, and their latest venture in the Kingdom not only solidifies this time-tested association but also exemplifies both companies’ commitment to the Kingdom’s growth and development,” said Flowserve’s Pump and Seal Division President Tom Ferguson.
According to Abahsain Group’s Director Shaukat Sheikh, the new venture sets the stage for the Kingdom to move to the next stage of its industrial development, which would enable Saudi Arabia to supply and support the entire industrial equipment requirements of the Gulf.
“We wish to contribute our bit to ensure that the Kingdom becomes the industrial hub whose spokes support the needs and catalyze industrial activity in the rest of this region,” said Sheikh.
With this venture, Flowserve along with Abahsain will become the leading provider of flow-control services for the Middle East infrastructure markets.
The joint venture will bring the latest technology to the region, broadening its base of indigenous manufacturing facilities.
The joint venture includes the local manufacturing of control valves, ball valves, plug valves, butterfly valves and electric and pneumatic actuators for the oil and gas, petrochemical, power and water industries.
Once completed, the 10,000 square-meter plant will produce flow-control equipment that will meet the highest industry standards. It is also expected to enhance existing capabilities for the manufacture of complete mechanical seals as well as facilitate their service, repair and refurbishment.
Repair and refurbishment of submersible pumps and other rotating equipment will also be available at the facility.
“Both partners are committed to realizing the strategic vision of the Kingdom, which affords tremendous opportunities for all entrepreneurs and identifies the need for rapid industrialization of our workforce, the transfer of technology and thereby import substitution in the shortest possible period of time,” said Sheikh.
“With this shared objective Abahsain and Flowserve have added another milestone to their long relationship.”
The plant is expected to go into production by July 2010 and significantly reduce dependence on foreign suppliers’ offlow-control products for major users including Saudi Aramco, SABIC (Saudi Basic Industries Corp.) and other allied industries. Once fully operational, the facility will be able to offer full life-cycle equipment management, including programs to reduce the total cost of ownership and improve operating efficiency.
It will also offer upfront services such as product selection, installation and commissioning, field performance testing and monitoring along with an on-site commissioning and repair service, which will facilitate training of Saudi manpower to use the high-quality equipment.