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Building Up Middle East Power

Alstom, Arabian Bemco team to manufacture power-gen equipment

Posted on December 10, 2013

Alstom has begun a 50:50 joint venture with Arabian Bemco Contracting Co. to set up a power generation equipment manufacturing facility in the King Abdullah Economic City, north of Jeddah, Saudi Arabia.

The initial investment will be more than US$53 million. In the first phase, the factory will manufacture power-generation components – the major share of production going to heat recovery steam generators (HRSGs) – to be used in cogeneration and combined-cycle power plants to increase thermal cycle efficiency and minimize fuel consumption. The partners said they envisage expanding the production scope to other power generation equipment in the second phase.

The two companies have previously worked together on projects, including the Riyadh PP 12 steam-tail project.

Alstom said the manufacturing plant will give both companies a strong local base across the Middle Eastern region, which represents about 25% of the global market.

Alstom has undertaken initiatives to launch a training program with Saudi Electricity Company (SEC) to create further employment. Following the technology transfer, the joint venture will be the exclusive licensee of Alstom HRSG technology in Saudi Arabia.