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King Salman Energy Park (Spark), a premier industrial hub in Saudi Arabia, announced the signing of five letters of intent (LOIs) for new projects valued at over SAR3 billion ($798.66 million) at Adipec 2024. These agreements are set to generate more than 3,000 direct and indirect jobs upon completion.
The LOIs, signed with key industry players, reinforce Spark’s strategic role as a world-class energy ecosystem supporting the full spectrum of the energy value chain. The new facilities will span various sectors, aligning with Saudi Arabia’s Vision 2030 to strengthen the nation’s industrial capabilities and energy sector.
Key Agreements:
BioChem: A new chemical manufacturing facility will be established to produce xanthan gum, essential for reducing viscosity in drilling fluids. This 100,000 sq m plant will be the first of its kind in the GCC and MENA region, with a production capacity of 20 kilotons annually. The project supports the Kingdom’s Vision 2030 goals to diversify its industrial base.
MAN Industries: A leading global player in the line pipe industry, MAN Industries will build a 360,000 sq m facility to manufacture large-diameter carbon steel pipes with anti-corrosion coatings. This project will boost Saudi Arabia’s metal processing sector and further integrate local manufacturing into the energy value chain.
Primetech International: A local energy services provider, Primetech will enhance its global reach with a facility at Spark, producing blow-out preventers and manifolds. This initiative aligns with Saudi Arabia’s strategy to expand its “Saudi Made” brand in the global energy services market.
Thermocables: A global leader in specialty cables, Thermocables will set up a 10,000 sq m manufacturing hub at Spark to produce high-quality cables. This plant will meet the growing demand for specialty cables in the energy sector.
Dalipal Holdings: A manufacturer of specialized oil country tubular goods, Dalipal Holdings will develop a vast 1,000,000 sq m facility at Spark to produce seamless steel pipes. This facility will play a crucial role in strengthening Saudi Arabia’s energy services sector.
Mishal Al-Zughaibi, President and CEO of Spark, expressed, “We are proud to welcome these industry leaders as tenants at Spark. The LOIs signed today underscore our commitment to fostering industrial growth and connecting tenants to the Saudi energy sector. This expansion further solidifies Spark’s position as a leading regional industrial ecosystem, driving innovation and sustainable growth.”
These agreements mark a significant milestone for Spark as it continues to connect global industry leaders to opportunities in Saudi Arabia’s thriving energy sector, contributing to the localization of the energy value chain and supporting Vision 2030’s long-term objectives. |
