Siemens, Modon sign major land lease deal
Jeddah, March 14, 2012
Siemens, a global leader in electronics and electrical engineering, has signed a land lease agreement with Saudi Industrial Property Authority (Modon) for building a manufacturing and service facility in Dammam.
The facility will create qualified jobs and serve as a technology hub for knowledge transfer.
Under the agreement, Siemens Energy will lease a 220,000 sq m plot of land – equivalent to about 30 soccer fields – in Dammam Industrial City and invest a three-digit million dollar figure in building 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.
Construction on the project is due to start in May. 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.
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-the-job training at Siemens. The first intake of 40 Saudi students started in December 2011.
Dr Tawfiq Al-Rabea, Saudi Arabia’s Minister of Commerce and Industry, said: "This is one of many mega-projects that the industrial cities have successfully attracted and that are due to deliver added value to the national economy, provide local sources for producing energy, in addition to aiding our efforts in localizing the workforce in this project.”
Roland Fischer, CEO of Siemens Energy’s Fossil Power Generation division, 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, which employs more than 1,850 people in its Riyadh headquarter, Jeddah, Dammam, Khobar and Dhahran, will be transferring all the necessary know how that is required in order to run an assembly site and later a manufacturing facility.
Arja Talakar, CEO of Siemens Saudi Arabia said: “The factory in Dammam is another milestone in our continuous commitment to the Kingdom of Saudi Arabia. The facility will be instrumental in the transfer of technological expertise and development of local Saudi talents.”
Director general of Saudi Industrial Property Authority Saleh Al-Rashid said: "The committee has provided industrial lands in all regions of the Kingdom, now reaching up to 110 million square meters of developed industrial lands.”
“The committee 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 added. – TradeArabia News Service
More Industry, Logistics & Shipping Stories
- Johnson Controls, Hitachi in AC venture
- OICT installs nextgen cranes at Sohar Port
- Saudi petchem giants eye share-swap merger in 2014
- Expo focus on UAE manufacturing sector
- Abu Dhabi port sets container throughput record
- Alba unit to mark HSE week
- Mideast air freight growth up 12.3pc
- Tycoon Sawiris announces $1bn Egypt investment
- Drydocks to build giant jack-up rigs in Dubai
- iMENA unveils big Saudi investment plans