Hanwha Power Systems has signed a land lease agreement to build a compressor packaging and service centre of approximately 11,600 sq m within King Salman Energy Park (SPARK), an international energy industry hub city 100% owned by Saudi Arabia's national oil company Aramco.
The packaging shop and service centre are scheduled to start construction in the first quarter of 2026 and aim to begin commercial operations in the first half of 2027. The agreement was signed at ADIPEC 2025, the world's largest oil and gas exhibition currently being held in Abu Dhabi, UAE.
Through this contract, Hanwha Power Systems plans to further strengthen its business competitiveness in the Middle East, where there is high demand for compressors and related equipment in the oil & gas, plant, and clean energy industries. This aligns with the Saudi government's direction for localising the supply chain, and moreover, Hanwha Power Systems is expected to contribute to the development of the local equipment industry by creating jobs locally and providing skilled personnel.
Hanwha Power Systems has been supplying high-quality compressors to various industrial sites worldwide. As of the first half of 2025, it has achieved a cumulative sales volume of 9,000 units of compressors and industrial equipment. A significant portion of these units have been sold to the Middle East and are currently operational, mainly being used in various industries such as oil & gas, carbon capture and utilization (CCUS), and air separation.
Hanwha Power Systems' newly constructed packaging and service center in Saudi Arabia plans to provide total care for customer equipment. While quickly responding to customer demands and enhancing customer satisfaction, it aims to strengthen market competitiveness by localizing equipment packaging to ensure timely supply of products that meet customer requirements. Furthermore, it plans to solidify partnerships with local companies active in various industries, including the oil & gas and power generation markets.
Soo-kyoung Kim, Head of AM business Unit at Hanwha Power Systems, stated: "Securing a foothold in the Middle East, where our major clients are concentrated, is essential for business expansion" adding, "We will ensure cost reduction, maximized efficiency, and stable operation throughout the lifecycle of the compressor equipment for local Middle Eastern clients."
Nabil Chaachou, Vice President of Strategy & Business Development at King Salman Energy Park (SPARK), said "This agreement reflects SPARK's commitment to attracting high-value industrial investments that advance the localization of the energy supply chain. Hanwha Power Systems' new facility strengthens our ecosystem by enabling advanced manufacturing and service capabilities that will create jobs, drive technology transfer, and support sustainable growth in the Kingdom." - TradeArabia News Service