Modon Director General Saleh Al-Rasheed, and Siemens (Saudi Arabia) CEO Arja Talakar signed the agreement in the presence of Minister of Commerce and Industry Tawfiq Al-Rabiah here yesterday. The others present included Fossil Power Generation at Siemens Energy CEO Roland Fischer, E.A. Juffali and Brothers CEO Amin Al-Afifi and executives of Modon and Siemens.
Under yesterday's agreement, Siemens Energy will lease a 220,000-square-meter plot of land in Dammam Industrial City to build 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.
Siemens is highly committed to supporting Saudi Arabia in meeting this challenge. The company will invest hundreds of millions of dollars to build a manufacturing and service center in the Kingdom together with its local partner E.A. Juffali and Brothers.
Al-Rabiah said: "This is one of many mega-projects that the industrial cities have successfully attracted and that are due to deliver, which have added value to the national economy and provide local sources for producing energy, in addition to aiding our efforts in localizing the work force in this project."
The Dammam plant will be the largest of its kind in the Middle East and third at world level after its two plants in Munich, Germany, and the United States.
Construction on the Dammam 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.
Arja Talakar, CEO of Siemens Saudi Arabia, said: "The factory in Dammam is another milestone in our continuous commitment to the Kingdom. The facility will be instrumental in the transfer of technological expertise and development of local Saudi talents."
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-job training at Siemens. The first intake of 40 Saudi students started in December 2011.
Al-Rabiah appreciated the German company for choosing the Kingdom to set up its third largest plant of its kind in the world.
He said the project will give an added value to the national economy by localizing power production technologies and preparing national cadres in this area.
"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," he added.
Modon, established in 2001 presents lucrative opportunities for investors in industrial and commercial activities, services and residential sectors.
Al-Rasheed said Modon has so far provided industrial lands up to 110 million square meters in all regions of the Kingdom.
"The industrial authority 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," he said.
Siemens Energy's Fossil Power Generation Division CEO Roland Fischer said: "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."
Siemens Saudi Arabia has about 2,000 employees working at five different locations. The new facility will create further qualified jobs in the Kingdom. Siemens also supports the government's efforts to effect social change in the country by recruiting Saudi women, and promotes the careers of young Saudis with targeted professional recruitment and training programs.
The German company said it collaborates with Saudi Electricity Co. for its Expert Development Program. Selected SEC employees will receive one year of training at various locations of Siemens in Germany and in the US to enhance their expertise in the field of energy technologies.
German Ambassador to Saudi Arabia Dieter W. Haller, who attended the signing event, said Germany is proud to be a partner of Saudi Arabia in many fields. "I am witnessing today a great moment of cooperation between Siemens and Modon. I look forward to seeing many more projects between Germany and Saudi Arabia in the future," he said.
