Manufacturing of choke valves

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Overview

This opportunity entails developing the value chain for the production of choke valves to serve KSA and the broader GCC market.

The overall demand for choke valves in Saudi Arabia has been increasing, estimated to be 2,200 units, and forecasted to increase at an annual growth rate of 3% to reach 2,500 units by 2022. Currently, choke valve components are manufacture and assembled outside Saudi Arabia, presenting a great opportunity for investors to localize production.

Beyond the KSA market, investors in Saudi have the opportunity to tap into the large regional market in the GCC, expected to increase from 2,900 units in 2018 to 3,300 units by 2022. The KSA market demand is expected to make up ~43% of the total GCC market demand.

The main focus of this opportunity is to establish component and final manufacturing facilities to produce choke valves.

  • Component manufacturing: establish manufacturing facilities for valve components (e.g., bodies, seats, stems, plugs…) by utilizing machining, cladding and heat treatment capabilities
  • Final manufacturing and testing: setup after-sales support and technical assistance services, including storage, logistics, installation, maintenance, and other remedial work

However, additional opportunities for localization exist across the value chain of choke valve production. These opportunities include:

  • Design: establish a plug and valve design capabilities in Saudi Arabia to cater for local requirements
  • Input materials: localize production of elastomers and coating
  • Input materials localize processing of steel and iron alloys (billets, forging, molding…) to plug valves specifications

Opportunity Details

Industrial and Manufacturing
Sector
Industrial Equipment & Spare Parts
Sub-sector
To be determined by the investor
Location
To be assessed by investor (cost drivers and other financial figures to be shared upon request)
Investment size
Open to starting the project as soon as possible
Timeline

Investment Model

Model: Opportunity to consider different operating models:
  • Pure private sector model
  • Joint venture with local player

Contact Our Manufacturing of choke valves Expert

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