25-01-2023

Emerson builds new innovation and manufacturing hub at King Salman Energy Park

The global technology, software and engineering powerhouse Emerson (NYSE: EMR) will build a state-of-the-art innovation and manufacturing hub at the King Salman Energy Park (SPARK) in Saudi Arabia, further expanding Emerson’s local capabilities. The facility will be one of the largest investments in the Middle East and Africa region for the company.

The facility, which is slated to open by December 2024, will provide industrial customers in the region with services for control systems engineering, staging and testing, manufacturing of differential pressure (DP) transmitters and control valves, pressure relief valve assembly and solenoid valve assembly.

The project demonstrates Emerson's continued commitment to its customers and stakeholders in Saudi Arabia as the company prepares for rapid local manufacturing expansion in the region. The new facility will be developed in accordance with the environmental sustainability principles to support the company’s net zero emission goals, while also adhering to SPARK's environmental sustainability standards.

Emerson’s construction of an innovation and manufacturing hub at SPARK aligns with Saudi Arabia's 'Saudi Vision 2030,' a strategic framework to promote local content and improve localization. The Saudi government’s initiatives are designed to reduce the country's reliance on imports, while supporting the development of domestic capabilities in a range of sectors, including manufacturing, technology and services.

“Our state-of-the-art innovation and manufacturing facility at King Salman Energy Park propels our expansion strategies in the Middle East and Africa region,” said Lal Karsanbhai, Emerson’s president and chief executive officer. “This investment represents a significant milestone in our mission to provide quality and reliable services for our customers in Saudi Arabia.”

Emerson is pursuing value chain localization as part of the ‘Made in KSA’ initiative and has targeted supply chain localization opportunities across its various products. As a result, the company is set to collaborate with local suppliers through extensive qualification processes, knowledge transfer, prototyping, and testing to ensure sustainability and self-sufficiency of its facilities in Saudi Arabia.

“We are delighted to be officially launching construction of our new, advanced innovation and manufacturing hub in the Kingdom of Saudi Arabia,” said Vidya Ramnath, president of Emerson Middle East and Africa.” The new facility is positioned to offer our range of services to customers, while also supporting the company’s net zero emission targets.”

Attendees at a groundbreaking ceremony held at SPARK on Jan. 24 included Lal Karsanbhai, president and chief executive officer of Emerson; Vidya Ramnath, president of Emerson Middle East & Africa; Hussein Zein, vice president and general manager of Emerson Saudi Arabia and Bahrain; Nabil Chaachou, vice president strategy & business development of King Salman Energy Park, and senior executives from Saudi Aramco. Other members of the company’s leadership team and local VIP customers were also in attendance.

Speaking on the occasion, Nabil Chaachou, vice president strategy & business development of SPARK said: “We are pleased with Emerson’s investment in SPARK and their trust in our ecosystem’s unique value proposition. Our partnership with Emerson is another step in our commitment to championing the localization of the value creation through dedicated industrial development that contributes to the local GDP, generates job opportunities, and supports socioeconomic advancement in the Kingdom. With a city that was master planned to seamlessly intertwine industrial areas with vibrant residential, educational, and commercial areas, we look forward to being the preeminent integrated global energy and industrial hub in the region and beyond.”