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Saudi Aramco: Public

2017Static and Rotating Components


Session Title Presenter

Introduction Abdullah Al-Qahtani

Value Proposition 1: Pipe fittings manufacturing Muwaffag Al-Ghamdi

Value Proposition 2: Heat Exchanger tubes design and manufacturing Saud Al-Faleh

Value Proposition 3: Butterfly valves manufacturing Vikas Ghai

Value Proposition 4: Plug valves manufacturing Vikas Ghai

Value Proposition 5: Choke valves manufacturing Vikas Ghai

Value Proposition 6: Gears manufacturing for industrial machinery Nasser Rushoud

Value Proposition 7: Mechanical seals design and manufacturing for industrial equipment

Naif Theeb

Value Proposition 8: Bearings design and manufacturing for industrial equipment Martin Ryder, Sulzer

Value Proposition 9: Industrial fan blades manufacturing Nasser Rushoud

Static and Rotating Workshop Agenda

Source: Saudi Aramco analysis


The next slides contain forward-looking statements regarding future events based on current expectations,

estimates, forecasts, and projections. The data is subject to updating, revision, further verification and

amendment without notice. No reliance may be placed for any purpose on the information or opinions

contained in this presentation or any other document or statement, or on the completeness, accuracy or

fairness of such information or opinions therein. No representation or warranty, express or implied, is made

or given by or on behalf of Saudi Aramco or its employees, or any other person as to the accuracy or

completeness or fairness of the information or opinions contained in this presentation and no responsibility

or liability is accepted by any of them for such information or opinions or for any errors, omissions,

misstatements, negligent or otherwise, or for any communication written or otherwise, contained or

referred to in this presentation.

Disclaimer


Contents

1. Introduction - Abdullah Al-Qahtani

2. Pipe fittings manufacturing

3. Heat Exchanger tubes design and manufacturing

4. Valves manufacturing

a. Butterfly valves

b. Plug valves

c. Choke valves

5. Gears manufacturing for industrial machinery

6. Mechanical seals design and manufacturing for industrial equipment

7. Bearings design and manufacturing for industrial equipment

8. Industrial fan blades manufacturing


Contents

1. Introduction

2. Pipe fittings manufacturing - Muwaffag Al-Ghamdi



a. Butterfly valves

b. Plug valves

c. Choke valves






Other opportunities

Raw materials Value added services

• Potential to establish facilities to locally produce

carbon steel, low alloy steel and corrosion

resistant alloy seamless pipes to specifications

• Potential to develop SMEs to perform services, such as

certified non-destructive inspection and testing,

logistics and sales and marketing to support local

manufacturing

Manufacturing opportunities

Manufacturing

• Potential to establish multiple facilities to locally machine and manufacture pipe fittings:

– Butt weld fittings

– Socket weld fittings

6


Pipe fittings manufacturing represents an attractive opportunity for localization within KSA


Butt weld and socket weld fittings are the two types of fittings under consideration for localization

• Fitting is welded to pipe end, with the same thickness

as pipe

• Usually hot formed

• Key types include:

– Elbow

– Tee

– Cap

– Reducer

• Pipe is inserted into the recessed area of the fitting

• Usually forged

• Key types include:

– Elbow

– Tee

– Couplings

– Union

– Reducer

Butt weld Socket weld

Fitting materials:• Carbon Steel (CS)

• Stainless Steel (SS)

• Alloy steel

• Corrosion resistance alloys such as Cr-Ni

Applications:• Oil and Gas pipelines

• Water pipelines

• Power plant, refinery, chemical plants cooling pipes

Source: Technavio, Manufacturers, Saudi Aramco analysis

Types of fittings


Market size was ~US$160 million or 860K Units, with ~87% made up of Butt Weld type and 94% of the current demand met by imports into KSA

Saudi Arabia historic market size

KSA market size evolution (‘000 units)

Source: Frost and Sullivan, Saudi Aramco analysis

Pipe fitting demand in Saudi Arabia was approximately 860 K units in 2016

597 651749

856742

96102

114

123

114

863

979

2014 20152013

753

2012

693

+23%

2016

856

Butt weld

Socket weld

6%

94%

Imports

Domestic

KSA imports (2016)


Market demand is expected to grow at ~13% annually, driven by demand from Utilities, Oil and Gas and Water sectors

Saudi Arabia expected market size

822

1,1901,374 1,303 1,333

1,517

157

176170 173

192

20182017 2019

943

1,348

121

1,473

1,709

20222020

1,506

13%

2021

1,550

Butt weld Socket weld

Value(‘000 units)


Pipe fitting forecasted demand in Saudi Arabia is estimated to reach ~1.7 million units by 2022


KSA demand is expected to make up ~40% of the overall GCC demand

10

GCC expected market size


9431,348 1,550 1,473 1,506 1,709

2,1912,521 2,395 2,449

2,779

1,532

20182017 2019

2,475

3,5393,869

4,488

20222020

3,955

13%

2021

4,071

KSA GCC

Value(‘000 units)

Pipe fitting forecasted demand in GCC is estimated to reach ~4.5 million units by 2022


1. Does not reflect future activities or opportunitiesSource: Company websites, Saudi Aramco analysis

KSA based Oil and Gas, manufacturing, industrial, construction companies are current consumers of pipe fittings1

Oil and Gas Manufacturing

Construction Power and water

Not Exhaustive


Opportunities

1. Partner with suppliers to

localize production of carbon

steel, low alloy steel and

corrosion resistant alloy

seamless pipes (sizes 4-16”)

to specifications

2. Potential to establish facilities to locally machine and manufacture pipe fittings:

– 1-2 focused on Butt weld fittings

– 1 focused on Socket weld fittings

3. Potential to develop SMEs to

perform services, such as non-

destructive inspection and

testing, logistics, sales and

marketing to support local

manufacturing

Tier-2/3

Raw materials Manufacturing Testing and distribution

Opportunities along the value chain

Source: Companies websites, Technavio, Saudi Aramco analysis,

Multiple opportunities exists to support localization of pipe fittings manufacturing


Contents

1. Introduction


3. Heat Exchanger tubes design and manufacturing - Saud Al-Faleh


a. Butterfly valves

b. Plug valves

c. Choke valves






Establish a state-of-the-art

manufacturing unit of Heat

Exchangers tubes to serve

energy industrial demand

across KSA and GCC

The opportunity

1. Current KSA demand is

estimated at ~1,600 Heat

Exchanger tube sets/annum

2. Forecasted ~18% annual

growth in the regional Heat

Exchangers tubes market until 2022

3. Attractive cost base including

low labor, utilities, logistics, and land costs

The business case


Heat Exchangers tubes represent an attractive opportunity given supply gap, expected growth, and localization potential


Tubing materials:• Carbon Steel (CS)

• Stainless Steel (SS)

• Steel Alloys

• Duplex/Super Duplex

• Nickel Alloys

• Titanium

• Copper Nickel

Condensers

Liquid-to-vapor exchangers

Heaters

Coolers

Chillers

Tubes Process Functions/Applications

Offers the possibility of heat transfer between gases and liquids significantly space-saving and is more efficient to implement than it is possible with straight tubes.

Finned:

Bent:

Designed for high temperature applications, especially steam condensing or hot oil systems. Bent tubes are selected when differential expansion makes a fixed tube sheet exchanger unsuitable.

For processes that require frequent mechanical cleaning, bare tube offers ease of cleaning and accessibility. Offers least pressure drop among other types.

Bare:

Heat Exchanger tubes configurations

Source: Saudi Aramco, Vallourec, Maxxtec, Kinam, Tubing China

The tubes in Heat Exchangers are key components that enable heat transfer between fluids running through and over the tubes


Strong upcoming industrial activity is expected to fuel the growth in Heat Exchangers tubes market

Saudi Arabia Heat Exchangers tubes expected market size

2,500 3,1251,437

1,5001,875

862

81275100

1,250

1,000

250 150

2017

500

112

487325

374

187

2018 20202019

1,624

6,250

5,000

2021

+42%

2,874575

2022

SS Tubes CS TubesAlloy Tubes

Value(units)


The demand for Heat Exchangers tubes in Saudi Arabia is expected to reach ~6,250 units by 2021


In addition to KSA demand, increased industrial activity in the rest of the GCC will support demand growth

GCC Heat Exchangers tubes expected market size evolution


1,625

5,0006,250

2,8752,125 1,750

2,250

2,625

2,500

3,250

+18%

2022

2,125

6,125

2020

3,875

7,625

2018

375

2017 2019

500

2021

2,625

8,750

Value(units)

Saudi Arabia

Rest of GCC

The demand for Heat Exchangers tubes in the GCC is expected to reach ~8,750 units by 2021


Opportunities

1. Establish Heat

Exchanger tubes design

office in the Kingdom that

is capable of customizing

tube sets

2. Partner with existing suppliers to expand raw materials offerings in the Kingdom

3. Potential for players to increase localization of steel strips and coils

4. Potential to set up facilities to produce welded and seamless tubing for Heat Exchangers in KSA

5. Provide testing and certification services for Heat Exchangers tubing

6. Set up technical assistance services for the assembly stage

7. Set up after sales support and technical assistance services, including inspection, testing, maintenance, and repair

Tier-3 Tier-2Tier-1/2

Tier-2/3

Input materials

Production Testing and AssemblyLifecycle management

Design



The gaps provide multiple opportunities to support Heat Exchangers tubes localization


Contents

1. Introduction



4. Valves manufacturing - Vikas Ghai

a. Butterfly valves

b. Plug valves

c. Choke valves






Additional Opportunities

Raw materials Maintenance & Repair

SMEs to further localize steel, elastomers and coatings SMEs to perform installation, maintenance, remedial

work, storage and distribution of valves

Main Opportunities

Components Finished Products

Potential to develop manufacturing facilities for

valves components

Potential to establish final manufacturing and testing

facilities of valves in the Kingdom


Several opportunities emerge for SMEs across the valves manufacturing value chain


Wide industrial applications

Butterfly valve Plug valve Choke valve

Oil & Gas, Water applications Oil and Gas applications

• Valve used for isolating or regulating flow

• Main types:

– Conventional

– High performance (double and triple offset)

• Consists of cylindrical or tapered plugs to control flow

• Main types:

– Lubricated– Non-lubricated– Eccentric

– Expanding`

• Control valves, typically used in oil and gas wells

• Main types:

– Non-regulating

– Regulating

Common valve types

Source: Manufacturers, Saudi Aramco Analysis

Butterfly, plug and choke valves are commonly used in Oil and Gas and other industrial activities across KSA


Butterfly valves expected market size

Source: Rystad, Saudi Aramco analysis

GCC market demand is expected to grow at 3% annual rate, with KSA making up 34% of the market

33.0 41.5 41.1 38.2 37.4

64.1

76.0 76.4 73.5 73.4

117.5

2018

97.0

2019

110.8111.6

2020 2021

117.6

+3%

2022

Saudi Arabia

Rest of GCC

Value(‘000 units)

Butterfly valves demand in GCC is estimated to reach ~111K units by 2022, with KSA making up 37,400 units


GCC market demand is expected to be ~26 K units by 2022 and growing at 3% annually

Plug valves expected market size


27.4 27.5

11.9

2020

11.8

15.6

2019

15.5

23.0

13.1

9.9

2018

11.4

26.4

15.0

+3%

26.3

2021

11.4

2022

14.9

Saudi Arabia

Rest of GCC

Value(‘000 units)

Plug valves demand in GCC is estimated to reach 26,300 units by 2022, with KSA making up 11,400 units


Choke valves expected market size

GCC market demand is expected to grow at 3% annual rate, with KSA making up 43% of the market

2.9

2018

3.6

2.8

6.4

5.1

2019

2.2

2020

6.3

2022

2.7

3.33.6

5.8

2.5

2021

5.9

3.3

2.5

+3%

Saudi Arabia

Rest of GCC

Value(‘000 units)


Choke valves demand in GCC is estimated to reach 5,800 units by 2022, with KSA making up 2,500 units


1

9

2

3

5

6

9

10

7

6

4

10

8

2

3

4

5

6

7

8

9

10

Body

Seat

Disc

Upper stem

Lower stem

Spring pin

Retainer

Top O-ring

Stem O-ring

Bearing

Significant potential exists to manufacture these components within KSA

Two main dimension ranges are: NPS 2 – 12 and NPS 14+

25

Butterfly valves manufacturing localization1

1. Does not reflect specification of any customerSource: Manufacturers, Saudi Aramco analysis,

Manufacturing of butterfly valve components has significant localization potential


1

3

10

9

8

5

7

6

Sealant injection fitting

Body

Stem

Controlled-dimension washers (N.S)

Plug

Spring

Grooving system

Seal gasket

1

2

3

4

5

6

7

8

Stem packing

Bonnet

9

10

O-ring

Flanges

Bearing

Sealant chamber

Gland

Cover

11

12

13

14

15

16

Other common components (N.S)

N.S: Not shown

2

Components manufacturing requires capabilities such as casting that can be localized within KSA

Plug valves manufacturing localization1

1. Does not reflect specification of any customerSource: Manufacturers, Saudi Aramco analysis,

Plug valve components manufacturing represents significant localization opportunity


1

2

4

5

7

8

9

10

9

9

9

11

12

13

14

15

16

3

6

Body

Bonnet

Seat/Bean

Sleeve

Plug

Stem

Seal ring

Grease fitting

1

2

3

4

5

6

7

8

O-ring

Stud

Handwheel

Junk ring

Crush gasket

Cylinder pin

Spindle

Packing ring

9

10

11

12

13

14

15

16

Currently choke valve components are manufactured and assembled outside KSA

Choke valves manufacturing localization1

1. Does not reflect specification of any customerSource: Manufacturers, Saudi Aramco analysis, ,

There is high localization potential to manufacture choke valve components within KSA


Opportunities

1. Opportunities to set up butterfly and valve design capabilities in the Kingdom according to customer needs and application requirements

2. Potential to further localize production of elastomers and coatings

3. Opportunity to process steel and iron alloys (billets, forging, molding etc.) to plug valves specifications

4. Opportunity to localize manufacturing of valve components such as bodies, seats, stems, plugs, discs, retainers, etc. by utilizing machining, cladding and heat treatment capabilities

5. Potential to localize final manufacturing and testing of butterfly, plug and choke valves

6. Opportunity to establish SMEs to manage storage, logistics, installation, maintenance, remedial work

Tier-1/2/3

Input materials

Components manufacturing

Final manufacturing and testing

Sales and after-sales services

Design



The components and final manufacturing of valves has strong localization potential


Contents

1. Introduction




a. Butterfly valves

b. Plug valves

c. Choke valves

5. Gears manufacturing for industrial machinery - Nasser Rushoud





Additional SME opportunities

Testing & Certification Operations and maintenance

• 1-2 SMEs (e.g., vibrations, noise, oil viscosity) • 1-2 SMEs* (e.g., installation, repairs, spare parts)


Finished Products and services

• Limited local manufacturing of gears in KSA; huge potential exists for SMEs to localize production of gears in Kingdom with an expected local demand of ~$140 MM by 2030

• Offer precision machining and heat treatment services to manufacturers of industrial gears

* SMEs will be common across multiple value propositions. The final number of SMEs will be confirmed only once firm commitmen ts to set up manufacturing facilities are made


Several opportunities, across manufacturing and services, exist for industrial gears


Helical gears

Herringbone gears Rack and pinion gears

Worm gears Market share: 10 – 20%

Spur gears Market share1: 40 – 60%

Bevel gears Market share1: 10 – 20%

Focus of this document

Gears market breakdown

1. Of total gears market as reported by TechavioSource: Saudi Aramco analysis, Technavio

The global gears market is dominated by spur gears and is mostly used in oil & gas applications


KSA’s industrial

gears market is

driven by the

presence of

several oil and gas

manufacturing

companies in the

Kingdom

Value(US$ million)

KSA industrial gears market size evolution

140

121

105102999794919388

79

202020192018 2030

3%

2017 20252013 201520142012 2016

Source: Saudi Aramco analysis, UN Comtrade

Demand for industrial gears in KSA is growing at a CAGR of ~3%, to reach $140 MM 2030


GCC1 industrial gears market size evolution

The presence of oil

& gas in the GCC

has resulted in

many companies

establishing

extraction and

production plants,

which has

increased

the demand for

gears in the region

Value(US$ million)

188

151

1211151101061019792

2017 2025 20302019 202020182014 2015 2016

5%

: Excluding KSASource: Saudi Aramco analysis, UN Comtrade

Demand for industrial gears in the GCC is in line with KSA growth, growing at a CAGR of ~5%, to reach $188 MM by 2030


Opportunities

1. Has the potential to be a part of a larger design center setup by the EPC or the OEM

2. Develop manufacturing capabilities of materials such as PEEK, Delrin, brass, etc.

3. Develop end to end manufacturing processes

4. Be an outsourced service provider offering heat treatment, machining, etc.

5. Develop equipment locally and supply to manufacturing facilities

6. Offer maintenance, installation and operations services

Tier-1/2/3

Design ManufacturingRaw materialsOperations & maintenance



There is room for SMEs to localize operation across the value chain


Contents

1. Introduction




a. Butterfly valves

b. Plug valves

c. Choke valves


6. Mechanical seals design and manufacturing for industrial equipment - NaifTheeb




Develop a manufacturing

facility to fabricate

mechanical seals to

serve major international

companies active in the

region

The opportunity

1. Current direct supply gap of

~5,200 units in KSA

2. Forecasted 6% annual

growth in the regional seals

market until 2030

3. High potential for localization

with funding and incentivesto grow your business

4. Competitive cost for

materials, labor and logistics

The business case


Mechanical seals represent an attractive opportunity given the current supply gap and expected demand growth


Focus of this value proposition

Mechanical seals

De

fin

itio

nIn

du

str

ial

ap

plic

ati

on

s

Dust Ring/Bearing

isolator

O-rings & flexible seals

Diaphragm seals

(membranes)

Automotive seals

Gaskets

• Pumps, compressors,

steam turbines, mixers and blowers, etc. in

automotive, power generation, food,

chemistry, oil, shipbuilding and

aerospace

• Prevent leakage

between shaft and casing

• Seal between rotating and stationary parts

• Seal bearing housing

of pumps and small steam turbines

• Seal bearing housing

to prevent it from dust and dirt.

• Part of mechanical

seal components

• Doughnut shaped

rubber rings• Flexible stationary

seals that blocks leakage of liquids and

gases• Often a part of

mechanical seals

• Applied when process

fluid can damage instr.

• Pressure measuring in refining,

petrochemical & chemical plants

• Flexible barrier,

sometimes called chemical seals, that

separates pressure sensor from fluid

• Fluid often viscous or acidic

• For specific

performance attributes within Automotive

industry

• Specific seals for

automotive industry often made of

amalgamation of cellular and solid

materials

• Applied in all

industries, e.g.– Metallic for heavy

industry– Fiber for extremely

high temperatures

• Stationary seals that

prevent inward and outward leakage by

filling the gap between two irregular surfaces

Seal and gasket products


Mechanical seals prevent inward and outward fluid leakage to atmosphere

https://www.google.se/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&docid=V2tT-yJS8AnXyM&tbnid=hr4pUEKyji1icM:&ved=0CAUQjRw&url=https://www.cromwell.co.uk/shop/040402/o-rings&ei=mxdxU6qYJ4z-oQSEwoH4Bg&psig=AFQjCNFVfSl1N_kcErKJwjlAzlV_s-mJ4w&ust=1400006912550868

http://www.nbseal.com/automotive-pump-seals/automotive-pump-seals-tpsb2.html

http://nfieldgear.com/enfield-store/media/catalog/product/cache/1/image/9df78eab33525d08d6e5fb8d27136e95/Z/9/Z91472.jpg


There are suppliers for mechanical seals in domestic market but further potential exists to localize the supply due to significant direct/ indirect demand

~30% of current market available

for localization (~5,200 units)

In addition, we estimate an

additional ~24,000 units of

indirect demand1

Value(‘000 units)

KSA mechanical seals market size and supply source

2016

18.1

5.2

17.3

11.79.7

+21%

12.9

2014

6.8

20152013

5.6

16.4

6.9

8.9

15.7

6.8

2012

14.9

8.0

DomesticImport

1. Note: Indirect demand is estimated through OEM vs after market researchSource: Saudi Aramco analysis, Saudi Arabia General Authority of Statistics, Saudi Customs, Mechanical Seals in Middle East Technavio Report

Domestic supply has increased, but localization potential still represents 30% of the market (~5,200 units)


Upcoming energy projects by Saudi Aramco, SEC, and SWCC are expected to fuel the growth in mechanical seals demand in Saudi Arabia

Value(‘000 units)

KSA mechanical seals expected market size evolution

2017

21.1

2018

19.0 20.0

6.1%

2030

26.8

2021

23.8

20272020

36.4

22.4

2029

34.3

202520242023

30.3

38.7

20222019

25.3

20282026

32.2

28.5

41.1

Mechanical Seals

Source: Saudi Aramco analysis, Mechanical Seals in Middle East Technavio Report

The demand for mechanical seals in Saudi Arabia is expected to reach ~41,000 units by 2030


Oil & Gas and other energy companies entities utilize pumps and compressors, indirectly generating demand for mechanical seals

KSA Pumps manufacturers/ service providers

KSA Compressors manufacturers/ service providers

KSA energy companies

Source: Company websites, Saudi Aramco analysis

Companies manufacturing pumps and compressors and energy companies are potential mechanical seals consumers


There is a growing demand in the region for high-quality mechanical seals used in Oil & Gas, Water and Wastewater, and Power projects

The GCC

mechanical seals

market is forecasted

to more than

double in size

by 2030

Value(‘000 units)

GCC mechanical seals market expected size evolution

76

20

2017

62

48

30

50

19

2030

103

30

2018

45

41

2025

45

18

27

2016

29

6%

Rest of GCC

KSA

Source: Saudi Aramco analysis, Mechanical Seals in Middle East Technavio Report

The GCC mechanical seals market is forecasted to grow at 6% annually until 2030


Opportunities

1. Establish design & engineering capabilities

2. Source emerging talent and technical professionals

3. Develop local foundries

4. Source 316 SS, Monel, Inconel come in bar/ tube and Graphite billets

5. Establish mechanical seals manufacturing facility to fabricate seals components. The facility includes turning, boring, grooving, milling, drilling and tapping capabilities

6. Establish a workshop that can deliver hard facing, grinding, lapping, polishing and welding capabilities in addition to advanced surface treatment procedures to deliver special applications

7. Provide quality control, assembly and installation services

8. Provide maintenance and repair services for mechanical seals installed base

Tier-3 Tier-2Tier-1/2Tier-2/3

Input materials


Finishing operationsInstallation, QC & maintenance

Designing & engineering

Value chain opportunities


Local value chain gaps translate into opportunities for your company to do business in the KSA


Contents

1. Introduction




a. Butterfly valves

b. Plug valves

c. Choke valves



7. Bearings design and manufacturing for industrial equipment - Martin Ryder, Sulzer



Develop a manufacturing

facility to fabricate ball-type and

rolling element bearings, and

provide quality control and

maintenance services to

major international companies

active in the region

The opportunity

1. Current direct supply gap of

1.6 million units

2. Forecasted 4% annual

growth in the regional

bearings market until 2030

3. High potential for localization

with funding and incentivesto grow your business

4. Attractive cost base for

materials, labor and logistics

The business case


Bearings represent an attractive opportunity given the current supply gap, expected demand growth and localization potential


Thrust Bearings for Top

Drives

Thrust bearings are

designed for demanding

applications in harsh

environments

Cam followers that are ideally

suited for applications where

heavy shock loads, high

rotational speeds, and corrosion

are major problems

Cam Followers for Pipe

Racking SystemsSlewing Bearings for

CranesSlewing ring bearings are

widely used in offshore

marine applications where

environmental conditions

are often severe and

external lubrication is

impractical

Rotary Table

Rotary Table Bearings

are mainly used in

oilfield rotary tables

Heavy Duty Roller Bearings for

Pumping Jacks

Heavy duty roller bearings are used

in mud pumps, oil field pumping

jacks, hydraulic pumps, sheave

blocks, etc.

Bearings applications in Oilfields

Source: RBC, Saudi Aramco analysis

Bearings find applications in various energy equipment such as jacks, rotary tables, turbo-expanders and top drives


Other rotating

equipment value

chains have also

been analyzed and

localization of

corresponding

components will be

considered in these

IKTVA workshops

Pumps cost structure

33%

Misc

5%Labour

10%

Bearings

Pump Castings & Parts

21%

Seals

Drivers

4%

Lubeoil

10%

Seal systems9%

8%

This value proposition

Covered in the Metals Ecosystem workshop

Mechanical seals covered in this

workshop

Elastomer based seals covered in Elastomers

workshop

Source: Sulzer, Saudi Aramco analysis

Bearings play a critical role in rotating equipment, Pumps and Compressors

Pumps example


Journal: Simplest type of bearing, comprising

just a bearing surface and no rolling elements. The journal slides over the

bearing surface.

Ball: Extremely common because they

can handle both radial and thrust loads, but can only handle a small

amount of weight.

Roller: Designed to carry heavy loads. The

primary roller is a cylinder, which means the load is distributed over a

larger area,

Tandem: Provides increased axial and radial

load carrying capacity. The load lines are parallel so that radial and axial

loads are shared.

Fluid: The load is supported by a thin layer

of rapidly moving pressurized liquid or gas between the bearing surfaces

Bearings configurations

Source: SKF, RBC Bearings; Butterworth-Heinemann, Saudi Aramco analysis

Bearing constrain relative motion to only the desired motion and reduces friction between moving parts


No major international bearings suppliers are currently manufacturing in KSA

100% of current market

available for localization

(1.6 million units)

In addition, we estimate an

additional 1 Million units of

indirect demand1

Value(million units)

Saudi Arabia bearings market size

1.551.531.481.431.40

2013

+3%

20152014 20162012

Imported

Note: 1. Indirect demand is estimated only for energy sector, in verticals l ike Upstream, Chemicals, Electrical, Instrumentation and MetalsSource: Saudi Aramco analysis, Global Info Research, Saudi Arabia General Authority of Statistics, Saudi Customs

Absence of domestic manufacturing presents a great opportunity to supply 1.55 Million units of KSA bearings demand


Growth is being driven by investment in heavy machinery and technological advances in lightweight materials for high-performance products

The KSA bearings

market is forecasted to

grow by 75% by

2030

Value(million units)

GCC bearings market expected size

1.6 1.6 1.72.2

2.7

0.8 0.9 0.9

1.2

1.5

4%

20302016

3.4

2018 2025

2.4 2.5

4.2

2017

2.6

KSARest of GCC

Source: Saudi Aramco analysis, Global Info Research, Saudi Arabia General Authority of Statistics, Saudi Customs

The GCC bearings market is forecasted to grow at 4% annually until 2030


Opportunities

1. Establish design & engineering capabilities

2. Source emerging talent and technical professionals

3. Partner with local manufacturers to establish and enhance industrial grade steel supply

4. Ensure supply security

5. Establish manufacturing facility to fabricate Plain and Rolling-element bearings

6. Partner with KSA firms already conducting machining, heating, grinding and cutting services to develop supply chain

7. Establish sheet cutting, turning and plastic injection molding services with focus on Oil & Gas, Renewables and Automotive industries

8. Consider JVs or acquisitions of assembly units

9. Provide quality control and maintenance services (low barriers to entry)

Tier-3 Tier-2Tier-1/2Tier-2/3

Input materials


Cage & assemblyQC & maintenance

Designing & engineering



Local value chain gaps translate into opportunities for your company to do business in the KSA


Oil & Gas and other energy companies entities utilize pumps and compressors, indirectly generating demand for bearings

KSA Pumps manufacturers/ service providers

KSA Compressors manufacturers/ service providers

KSA energy companies

Source: Company websites, Saudi Aramco analysis

Companies manufacturing pumps and compressors and energy companies are potential bearings consumers


Contents

1. Introduction




a. Butterfly valves

b. Plug valves

c. Choke valves




8. Industrial fan blades manufacturing - Nasser Rushoud


Additional SME opportunities

Maintenance Testing & Certification

•SME opportunity for maintenance, inspection, &

product replacement services and facilities

•SME opportunity for testing facilities (sound, air

performance, vibration)


Raw material and components Finished Products

• Localize production of raw materials such as FRP,

glass fiber and galvanized steel

• Localize production of key components such as

blades, hubs, seal disks and plates

• Opportunity for local manufacturing and assembling

facilities for axial industrial fan blades (mainly for air

coolers)


Several opportunities exist for SMEs across manufacturing and support functions for industrial fans


Examples

Manual adjustable pitch Auto variable pitch

Hudson Tuf-Lite II Howden K seriesCOFIMCO BR series Moore 1000series

Industrial fan and blade types


Two types of blades are prevalent in axial air cooling fans-manual adjustable pitch and auto variable pitch


Wide-range of

application of axial fans

in industrial cooling

and ventilation

exhaust fan bladesis boosting their

demand significantly

Value(US$ million)

GCC industrial fans expected market size evolution

356

164

192

2024

503

248

7%

2030

193

216

2026

382

178

204

2025 2027

241

438

470

228

2028 2029

210

255

228

409

92

290

100

2021

139

172

311

2022

182

162

271

118

153

2020

254

109

333

145

2019 2023

237

137

128151

2018

222

129

GCC KSA

Source: Saudi Aramco analysis, UN Comtrade

GCC & KSA projected demand is expected to reach $503 Million by 2030 with a CAGR of ~7%


Opportunities

1. Establish production of key material such as FRP, Glass fiber, Galvanized steel and epoxy resins

2. Establish local manufacturing of key components such as blades, hubs, seal disks, plates and clamps

3. Establish local facilities for welding & assembly of industrial fans

4. Establish local and facilities for inspection of industrial fans

5. Localize testing facilities (e.g. vibration testing) in KSA as well as maintenance, after sales and also manufacturing of key equipment

Tier-1/2/3

Design & material selection

Welding, assembly, & inspection

Manufacturing of components

After sales, testing, & maintenance



There is high localization potential in welding, assembly, inspection, and after sales & maintenance


Please direct all inquiries to:

We invite you to engage with the iktva program and grow your business in Saudi Arabia

Abdullah M Al-Qahtani

Local Industrial Development

Saudi Aramco

[email protected]

Office number:+966 13 874-1756

Nasser K Alrushoud

Local Industrial Development

Saudi Aramco

[email protected]

Office number: +966 13 679-5437

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