Saudi Aramco: Public
2017Static and Rotating Components
Saudi Aramco: Public
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
Saudi Aramco: Public
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
Saudi Aramco: Public
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
Saudi Aramco: Public
Contents
1. Introduction
2. Pipe fittings manufacturing - Muwaffag Al-Ghamdi
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
Saudi Aramco: Public
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
Source: Saudi Aramco analysis
Pipe fittings manufacturing represents an attractive opportunity for localization within KSA
Saudi Aramco: Public
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
Saudi Aramco: Public
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)
Saudi Aramco: Public
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)
Source: Frost and Sullivan, Saudi Aramco analysis
Pipe fitting forecasted demand in Saudi Arabia is estimated to reach ~1.7 million units by 2022
Saudi Aramco: Public
KSA demand is expected to make up ~40% of the overall GCC demand
10
GCC expected market size
Source: Frost and Sullivan, Saudi Aramco analysis
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
Saudi Aramco: Public
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
Saudi Aramco: Public
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
Saudi Aramco: Public
Contents
1. Introduction
2. Pipe fittings manufacturing
3. Heat Exchanger tubes design and manufacturing - Saud Al-Faleh
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
Saudi Aramco: Public
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
Source: Saudi Aramco analysis
Heat Exchangers tubes represent an attractive opportunity given supply gap, expected growth, and localization potential
Saudi Aramco: Public
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
Saudi Aramco: Public
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)
Source: Saudi Aramco analysis
The demand for Heat Exchangers tubes in Saudi Arabia is expected to reach ~6,250 units by 2021
Saudi Aramco: Public
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
Source: Saudi Aramco analysis
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
Saudi Aramco: Public
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
Opportunities along the value chain
Source: Saudi Aramco analysis
The gaps provide multiple opportunities to support Heat Exchangers tubes localization
Saudi Aramco: Public
Contents
1. Introduction
2. Pipe fittings manufacturing
3. Heat Exchanger tubes design and manufacturing
4. Valves manufacturing - Vikas Ghai
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
Saudi Aramco: Public
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
Source: Saudi Aramco analysis
Several opportunities emerge for SMEs across the valves manufacturing value chain
Saudi Aramco: Public
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
Saudi Aramco: Public
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
Saudi Aramco: Public
GCC market demand is expected to be ~26 K units by 2022 and growing at 3% annually
Plug valves expected market size
Source: Rystad, Saudi Aramco analysis
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
Saudi Aramco: Public
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)
Source: Rystad, Saudi Aramco analysis
Choke valves demand in GCC is estimated to reach 5,800 units by 2022, with KSA making up 2,500 units
Saudi Aramco: Public
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
Saudi Aramco: Public
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
Saudi Aramco: Public
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
Saudi Aramco: Public
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
Opportunities along the value chain
Source: Saudi Aramco analysis
The components and final manufacturing of valves has strong localization potential
Saudi Aramco: Public
Contents
1. Introduction
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 - Nasser Rushoud
6. Mechanical seals design and manufacturing for industrial equipment
7. Bearings design and manufacturing for industrial equipment
8. Industrial fan blades manufacturing
Saudi Aramco: Public
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)
Manufacturing opportunities
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 ~$140 MM by 2030
• Offer precision machining and heat treatment services to manufacturers of industrial gears
* SMEs will be common across multiple value propositions. The final number of SMEs will be confirmed only once firm commitmen ts to set up manufacturing facilities are made
Source: Saudi Aramco analysis
Several opportunities, across manufacturing and services, exist for industrial gears
Saudi Aramco: Public
Helical gears
Herringbone gears Rack and pinion gears
Worm gears Market share: 10 – 20%
Spur gears Market share1: 40 – 60%
Bevel gears Market share1: 10 – 20%
Focus of this document
Gears market breakdown
1. Of total gears market as reported by TechavioSource: Saudi Aramco analysis, Technavio
The global gears market is dominated by spur gears and is mostly used in oil & gas applications
Saudi Aramco: Public
KSA’s industrial
gears market is
driven by the
presence of
several oil and gas
manufacturing
companies in the
Kingdom
Value(US$ 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 $140 MM 2030
Saudi Aramco: Public
GCC1 industrial gears market size evolution
The presence of oil
& gas in the GCC
has resulted in
many companies
establishing
extraction and
production plants,
which has
increased
the demand for
gears in the region
Value(US$ 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
Saudi Aramco: Public
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
Opportunities along the value chain
Source: Saudi Aramco analysis
There is room for SMEs to localize operation across the value chain
Saudi Aramco: Public
Contents
1. Introduction
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 - NaifTheeb
7. Bearings design and manufacturing for industrial equipment
8. Industrial fan blades manufacturing
Saudi Aramco: Public
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
Source: Saudi Aramco analysis
Mechanical seals represent an attractive opportunity given the current supply gap and expected demand growth
Saudi Aramco: Public
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
Source: Saudi Aramco analysis
Mechanical seals prevent inward and outward fluid leakage to atmosphere
Saudi Aramco: Public
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)
Saudi Aramco: Public
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
Saudi Aramco: Public
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
Saudi Aramco: Public
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
Saudi Aramco: Public
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
Components manufacturing
Finishing operationsInstallation, QC & maintenance
Designing & engineering
Value chain opportunities
Source: Saudi Aramco analysis
Local value chain gaps translate into opportunities for your company to do business in the KSA
Saudi Aramco: Public
Contents
1. Introduction
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 - Martin Ryder, Sulzer
8. Industrial fan blades manufacturing
Saudi Aramco: Public
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
Source: Saudi Aramco analysis
Bearings represent an attractive opportunity given the current supply gap, expected demand growth and localization potential
Saudi Aramco: Public
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
Saudi Aramco: Public
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
Saudi Aramco: Public
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
Saudi Aramco: Public
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
Saudi Aramco: Public
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
Saudi Aramco: Public
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
Components manufacturing
Cage & assemblyQC & maintenance
Designing & engineering
Opportunities along the value chain
Source: Saudi Aramco analysis
Local value chain gaps translate into opportunities for your company to do business in the KSA
Saudi Aramco: Public
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
Saudi Aramco: Public
Contents
1. Introduction
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 - Nasser Rushoud
Saudi Aramco: Public
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)
Manufacturing opportunities
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)
Source: Saudi Aramco analysis
Several opportunities exist for SMEs across manufacturing and support functions for industrial fans
Saudi Aramco: Public
Examples
Manual adjustable pitch Auto variable pitch
Hudson Tuf-Lite II Howden K seriesCOFIMCO BR series Moore 1000series
Industrial fan and blade types
Source: Saudi Aramco analysis
Two types of blades are prevalent in axial air cooling fans-manual adjustable pitch and auto variable pitch
Saudi Aramco: Public
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%
Saudi Aramco: Public
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
Opportunities along the value chain
Source: Saudi Aramco analysis
There is high localization potential in welding, assembly, inspection, and after sales & maintenance
Saudi Aramco: Public
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
Office number:+966 13 874-1756
Nasser K Alrushoud
Local Industrial Development
Saudi Aramco
Office number: +966 13 679-5437