Saudi Arabia: Spark secures $798 million agreements for five new initiatives

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Saudi Arabia: Spark secures $798 million agreements for five new initiatives
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The agreements, valued at over SAR3 billion ($798.66 million), are projected to generate more than 3,000 direct and indirect jobs upon maturity.

King Salman Energy Park (Spark), a premier industrial ecosystem in Saudi Arabia, executed five letters of intent for new projects with notable sector participants at Adipec 2024, the largest and most comprehensive assembly for the energy business globally.


The agreements, valued at over SAR3 billion ($798.66 million), are projected to generate more than 3,000 direct and indirect jobs upon maturity. 

The five letters of intent with prominent manufacturers demonstrate Spark's continuous advancement as a premier industrial environment committed to assisting tenants throughout the energy value chain. 

• In a statement of intent signed with CEO Mohammed Hayef, BioChem, a chemical manufacturing firm, will develop a cutting-edge facility at Spark to generate xanthan gum, a compound utilized to diminish the structural integrity and viscosity of materials such as drilling fluid. Spanning 100,000 square meters, BioChem's facility, the inaugural of its kind in the GCC and MENA regions, is projected to yield 20 kilotons of xanthan gum annually. It will be integrated into Sparks's chemical sector and is anticipated to bolster the Kingdom's aspirations for a prosperous economy, in accordance with Vision 2030. 

MAN Industries, a prominent entity in the line pipe sector, will establish a 360,000 sq m facility at Spark following a letter of intent signed with Projects Vice President, Hardik Shah. The plant will manufacture large-diameter carbon steel pipes and provide anti-corrosion coatings, enhancing the metal processing industry in Saudi Arabia. 

• Regional participant Primetech International Company intends to pursue worldwide expansion, aligning with the kingdom's aspirations to diversify its position in the energy services sector. The Spark plant will manufacture blowout preventers and manifolds, thereby boosting the global presence of the kingdom's "Saudi Made" brand. produces a diverse array of oilfield apparatus. In a letter of intent executed with Operations Manager Kiran Kumar Primetech 

Thermocables, a prominent manufacturer of specialty cables, will concentrate on high-quality cable production in its 10,000 sq m SPARK manufacturing facility, subsequent to an agreement with Chairman Chetan Ghurka. 

Meng Fanyong, Chairman of Dalipal Holdings, signed a letter of intent for the maker of specialized oil country tubular goods to fabricate seamless steel pipes at its SPARK plant. This facility will include over 1,000,000 square meters and cater to the Kingdom's energy services sector. 

During the signing of the Letters of Intent at Adipec, Mishal Al-Zughaibi, President and CEO of Spark, remarked: “We are honored to welcome these industry leaders as tenants at Spark.” The letters of intent executed today emphasize our dedication to promoting industrial expansion and linking tenants to the Saudi energy sector. This expansion reinforces Spark's status as a prominent regional industrial ecosystem, fostering innovation and sustainable growth. 

These signatures signify a major achievement for Spark as it persists in linking the world to prospects inside the Saudi energy sector and beyond, while also advancing the objectives of Vision 2030 to localize the energy value chain, according to Spark. 

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