Hanwha Power Systems to Establish Compressor Production and Service Hub in Saudi Arabia

Enhancing Compressor Competitiveness Through Middle Eastern Localization
Contributing to Supply Chain Localization and Job Creation

Hanwha Power Systems is accelerating its expansion into the Middle Eastern market by establishing a local production and service hub in King Salman Energy Park (SPARK), the energy industry hub city in Saudi Arabia.

Sukyung Kim, Head of AM Business Division at Hanwha Power Systems (right), and Mishal I. Al-Zughaibi, CEO of King Salman Energy Park (SPARK) (left), are posing for a commemorative photo after signing a lease agreement for the compressor packaging and service center site within Saudi SPARK at the 'ADIPEC 2025' exhibition held in Abu Dhabi on the 4th (local time). Provided by Hanwha Power Systems

Hanwha Power Systems announced on the 5th that it signed a lease agreement with SPARK for a compressor packaging and service center site of approximately 11,570 square meters at the 'ADIPEC 2025,' the world's largest oil and gas exhibition, held in Abu Dhabi on the 4th (local time). The new hub is scheduled to begin construction in the first quarter of next year, with the goal of commencing commercial operations in the first half of 2027. By establishing both a packaging shop and a service center, the company plans to provide integrated management for the manufacturing, maintenance, and repair of equipment for local clients. The company stated, "The Middle East is a key market with high demand for compressors across oil and gas, plant, and clean energy sectors," adding, "Through a localized production and service system, we will strengthen our supply chain responsiveness and respond quickly to customer needs."

With this investment, Hanwha Power Systems is also aligning with the Saudi government's 'localization' policy for supply chains. The company plans to contribute to strengthening the industrial ecosystem by hiring local talent and providing technical training. To date, Hanwha Power Systems has supplied about 9,000 compressors and industrial equipment to industrial sites worldwide. In particular, in the Middle East, its equipment is operating in various sectors, including oil and gas, carbon capture utilization and storage (CCUS), and air separation.

Sukyung Kim, Head of AM Business Division at Hanwha Power Systems, stated, "Securing a service hub focused on Middle Eastern clients is key to business expansion," adding, "We will ensure efficiency and stability throughout the entire equipment lifecycle." Nabil Chaachou, Vice President of SPARK, commented, "Hanwha Power Systems' advanced manufacturing and service capabilities will contribute to Saudi Arabia's industrial ecosystem and job creation," and described the partnership as "a symbolic collaboration for sustainable growth."

This content was produced with the assistance of AI translation services.