GE Oil & Gas Plans Major Manufacturing Project in Saudi Arabia

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The advanced oil and gas manufacturing facility to be built by GE Oil &Gas (NYSE:GE) (Fairfield, Connecticut) at Damman Second Industrial City in Saudi Arabia is part of a $1 billion commitment that the company made with Saudi Arabia in 2012.

GE signed a 74,000-square-meter land-lease agreement with the Saudi Industrial Property Authority (Modon) for the facility, which will cover about 40,000 square meters. It will be located near the existing pressure control facility and will integrate the different business lines of GE Oil & Gas under one roof.

The manufacturing facility is scheduled to be operational in the fourth quarter of 2015. It will enable the company to support its key customers, including Saudi Aramco, with shorter cycles through the localized manufacturing of key components.

The facility will provide consolidated offices, as well as manufacturing capabilities, packaging and assembly for the company's businesses. This includes measurement and control, subsea systems and artificial lift and pressure control equipment for its drilling and surface business.

The project agreement was signed at a ceremony in Damman by Jeffrey Immelt, GE's chairman and CEO; Bahrain Hisham Al Bahkali, GE's president and CEO in Saudi Arabia; and Saleh I Al-Rasheed, the director general of Modon.

For related information, see December 7, 2012, article - GE Powers into Middle East Markets

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