Siemens delivers first Made in KSA gas turbine

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Minister of Energy, Industry and Mineral Resources, Khalid A. Al-Falih, Amin Nasser, president and CEO of Saudi Aramco and Deputy Minister of Electricity and Chairman of Saudi Electricity Company Saleh Al-Awaji at the Siemens Dammam Energy Hub.
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Updated 23 May 2016

Siemens delivers first Made in KSA gas turbine

DAMMAM: In line with Saudi Vision 2030 and Saudi Aramco’s in-Kingdom Total Value Add (iktva) program, Siemens has delivered its first gas turbine built in Saudi Arabia.

The gas turbine, which will be installed at Saudi Aramco’s new power plant as part of the Jazan refinery project, was produced at the Siemens Dammam Energy Hub, Saudi Arabia’s first gas turbine manufacturing facility and the largest in the Middle East.
The celebration ceremony of the first Made in KSA gas turbine on Sunday, held with the support of Minister of Energy, Industry and Mineral Resources, Khalid A. Al-Falih, was attended by Amin Nasser, president and CEO of Saudi Aramco, welcomed dignitaries from the government, as well as key stakeholders from the private sector.
Al-Falih said: “Today, we celebrate the first utility-size gas turbine to be assembled here in Saudi Arabia. My thanks and congratulations to everyone at Siemens who has worked hard to make this day possible – including, of course, the qualified young Saudis, trained by Siemens with Saudi Aramco support. This achievement closely aligns with Saudi Vision 2030 announced last month by Deputy Crown Prince Mohammed bin Salman, with the full blessing of Custodian of the Two Holy Mosques King Salman.”
He added: “While oil and gas will remain fundamental pillars of our economy, the promise of Saudi Vision 2030 will liberate our economy from its over-dependence on oil exports for revenues. Instead, our natural endowments will enable our country’s other strengths and capabilities — especially the talent and energy of our youth, and the critical SME sector — in fundamentally new ways.”
“Today is a symbol of the win-win-win that can be achieved for suppliers, for Saudi companies, and for Saudi Arabia if we share the same vision and share the same responsibility for making it a reality. The Kingdom is open for companies, like Siemens, to invest further in our economy, our SMEs, and our people, in return for rich rewards – both here in the Kingdom and from resulting exports.”

Nasser said: “I congratulate the Siemens team for the delivery of the gas turbine from their largest Middle East manufacturing facility in Dammam Second Industrial City. Working with MODON and Saudi Aramco, Siemens has demonstrated that close collaboration can help realize localization growth opportunities, aligned with Saudi Vision 2030.”
Joe Kaeser, president and CEO of Siemens AG, stated: “The Kingdom’s Vision 2030 represents the ambitious determination of transforming the nation economically and socially. We sincerely believe that Vision 2030 is one of the most significant milestones in the Kingdom’s contemporary history since the discovery of oil. Siemens and its more than 2,000 employees in the Kingdom will actively support Vision 2030, through localization, innovation and global partnership.”
In 2011, Siemens, together with Saudi Aramco and Saudi Electricity Company, jointly committed to build the Siemens Dammam Energy Hub as part of the company’s continuously expanding local footprint in the Kingdom.
Saleh Al-Rasheed, director general of the Saudi Industrial Property Authority (MODON), said, “When MODON and Siemens signed the land lease agreement for the construction of a manufacturing and service facility in 2012, we had an ambition at that moment, and believed this would be one of many mega projects that MODON has successfully attracted to the industrial cities. Today, we are happy to see that the largest Siemens manufacturing facility in the Middle East to call the Second Industrial City in Dammam its home. We appreciate the efforts that Siemens has invested in training and qualifying young Saudis to achieve true knowledge transfer and the build-up of local capabilities.”
Siemens has embarked on a program to train young Saudi talent in advanced gas turbine technologies, both domestically and abroad. The graduates from the program are employed at the Dammam factory and represent the next generation of leaders and experts who will shape the future of the energy industry in the Kingdom.
Arja Talakar, CEO of Siemens Saudi Arabia said: “Today is a historic day for the Kingdom of Saudi Arabia and for Siemens. Together with our partners we were able to give this high-tech gas turbine a new home, with technology built by young Saudi talent, in Saudi Arabia, for Saudi Arabia. That is what we are celebrating today.”
Siemens has been active in the Kingdom for over 85 years and carries on with its commitment to being an active player in the development of the Kingdom’s infrastructure. Deputy Minister of Electricity and Chairman of Saudi Electricity Company Saleh Al-Awaji was among the dignitaries at the event and echoed this sentiment, and said: “No doubt Siemens is one of the historical partners in the Kingdom, a partner of our infrastructure development, particularly in the power sector.”
The event provided an excellent opportunity to underline Siemens’ new claim — Ingenuity for Life. Arja Talakar explained: “Ingenuity for Life is the claim that encompasses the unrelenting drive and promise to create value for our customers, employees, partners and society every day, and for an entire lifetime. With ingenuity, Siemens sets the benchmark in electrification and automation, enhanced by digitalization around the globe. Our goal is to serve and advance societies by making our technology and knowledge accessible to more people around the world.”
Kaeser added: “Since our company’s formation, nearly 170 years ago, we have had a clear commitment to thinking and acting in the interest of future generations because we believe that acting responsibly is the only way to achieve a balance between profitable long-term growth, the planet and people. Siemens conducts business to society, and together with Juffali we are ready to jointly identify what lies over the horizon and will leverage our collective strength to serve the Kingdom and its people. Because what is important to Saudi Arabia matters to Siemens.”


German businesses do not expect quick return to normal

Updated 11 min ago

German businesses do not expect quick return to normal

  • Germany’s economy is likely to shrink by 6.6 percent this year
  • That would be Germany’s worst economic performance since reunification in 1990

BERLIN: Germany’s economy is likely to shrink by 6.6 percent this year as businesses expect it will take nine months on average before operations return to normal after the coronavirus, the Ifo Institute said on Thursday.
That would be Germany’s worst economic performance since reunification in 1990.
As the outlook improves next year, Ifo predicts Europe’s biggest economy will grow 10.2 percent in 2021.
Recent surveys suggest Germany is slowly recovering after economic life was restricted in late March to contain the coronavirus pandemic.
Ifo, however, said some businesses are braced for longer and more painful recoveries.
Travel, hospitality and car manufacturing expected lengthier recoveries, while aviation expects normalization to take 16 months, Ifo’s survey showed.
Ifo expects the economy to shrink 12.4 percent in the second quarter of 2020 from a year earlier due to the nationwide lockdown.
The forecasts are for Ifo’s most likely scenario.
In its worst-case scenario, in which a return to normal took 16 months, the economy would shrink 9.3 percent this year and grow 9.5 percent in 2021. In the best case, companies would recover in five months, the economy would shrink just 3.9 percent in 2020 and expand 7.4 percent next year.
All three scenarios, based on business sentiment as well as production, turnover and foreign trade data, assumed a gradual relaxation of restrictions from the end of April. Smaller shops reopened on April 20.
Construction, until recently resilient in the face of the downturn, will also suffer this year, its industry association said. It forecast turnover will stagnate at $149 billion, the same level as last year but a decline of 3 percent in real terms.
Even in the health care sector, which might have been expected to be a beneficiary of the crisis, 72 percent of companies expect revenues to fall thanks to the impact of the crisis on operations and severed supply chains, a German Chambers of Commerce survey showed.
Only 6 percent were profiting from increased demand for products like protective clothing, ventilators and diagnostic tests, the survey showed.
Germany was already teetering on the edge of recession before the coronavirus outbreak. Its economy grew 0.6 percent in 2019, its slowest rate since 2013.