GE Oil & Gas groundbreaking of Multi-Modal Manufacturing Center at MODON site in Dammam

Continuing to build on its commitment to promote localized manufacturing and talent development, GE Oil & Gas (NYSE: GE) today marked the ground-breaking of its multi-modal manufacturing and service facility at their MODON (Saudi Industrial Property Authority) site in 2nd Industrial City, Dammam. 

This new phase of work will build upon the recent expansion of the GE Oil & Gas Pressure Control manufacturing facility that was inaugurated in late 2015 with additional capabilities to manufacture and service the entire range of the company’s oil and gas portfolio including Artificial lift, Digital Solutions, Downstream Technology Solutions, Turbomachinery Solutions and Subsea.  

With the new Multi-Modal Manufacturing Center, GE Oil & Gas is bringing added ‘Made in Saudi’ capabilities. It will serve as a manufacturing, assembly, repair, services and training facility for advanced gas turbines and mechanical drives. The addition of 18,000 square meters of facilities at the MODON site will create over 100 new jobs in the start-up phase with 80% Saudization, underlining GE’s commitment to the In Kingdom Total Value Add (IKTVA) initiative of Saudi Aramco that promotes localization. 

In addition to showcasing the strengths of the GE Oil & Gas business, the new facility will also deliver the services of the recently acquired Alstom Grid business, thus offering a full portfolio for customers in the Kingdom. 

GE Oil & Gas President & CEO Lorenzo Simonelli marked the ground-breaking of the expansion in the presence of Abdulaziz Abdulkarim, Vice President of Procurement & Supply Chain Management Saudi Aramco; Rami Qasem, President & CEO, GE Oil & Gas, Middle East, North Africa & Turkey; and other senior dignitaries and officials. 

Lorenzo Simonelli said: “With over 80 years of partnership in the Kingdom, we are committed to strengthening our localized manufacturing, service and repair capabilities and to build our already strong local talent pool. The new center brings cross-functional synergies to our operations in the Kingdom and will serve as a one-stop center for our customers in Saudi and the region. The integration of all our services at MODON and our continued investments in the Kingdom are aimed at supporting the economic goals of the government to promote growth and diversification based on job creation for Saudi nationals and localized manufacturing that enhances Saudi Arabia’s international competitiveness.”

Rami Qasem added: “The work we are starting now at our MODON site marks another important milestone for GE Oil & Gas’ partnership in the Kingdom. It underlines our commitment to the In Kingdom Total Added Value initiative. We’re extremely proud of our Saudi team and thank our partners for their continued strong support.” 

Abdulaziz Al-Abdulkarim, Vice President of Procurement & Supply Chain Management Saudi Aramco said: “We are confident that our In Kingdom Total Value Add (IKTVA) initiative which we launched last December is steadily gaining momentum. As partners such as GE Oil & Gas are demonstrating, IKTVA is a ‘win-win” proposition for companies able to build a deep and lasting relationship with the Kingdom by setting-up shop here in order localize our materials and services’ procurements needs, while supporting economic growth, job creation and skills development in Saudi Arabia.” 

The GE Oil & Gas Pressure Control manufacturing facility, the expansion of which opened in November 2015, increased output capacity three times the original. The new expansion phases will further build the portfolio of solutions it offers, further establishing MODON as a hub for GE Oil & Gas to serve the Kingdom and the region with greater efficiency. 

GE Oil & Gas recently completed the first six high-efficiency gas compression trains manufactured in Saudi Arabia that are being provided for Phase I of Saudi Aramco’s Master Gas System expansion project in the Kingdom. These six compression trains were fully manufactured locally at the GE Manufacturing & Technology Center (GEMTEC) in Dammam.

With three offices and seven facilities, Saudi Arabia accounts for the largest GE workforce in the Middle East with over 2,000 employees driving the Aviation, Healthcare, Oil & Gas, Power & Water and Transportation businesses. GE is focused on taking its work into the next industrial era with technological solutions that create economic and social value to the country and its people.