Manufacturing of heat exchanger tubes

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This opportunity entails developing the value chain for the production of heat exchanger tubes to serve energy industrial demand across KSA and the broader GCC market.

Overall demand for heat exchange tubes has been increasing, estimated to be 500 units in 2017. Driven by strong upcoming industrial activity, demand for heat exchanger tubes is forecasted to increase to reach 6,250 units by 2021. In 2017, demand for heat exchanger tubes is 50% for CS tubes, 30% for SS tubes and 20% Alloy tubes. The split is expected to remain relatively the same till 2021.

Beyond the KSA market, investors in Saudi have the opportunity to tap into the large regional market in the GCC, expected to increase from 2,125 units in 2017 to 2,500 units by 2021.

In addition to an increasing market demand, Saudi has an attractive cost base including low labor, land, utilities and logistics cost.

The main focus of this opportunity is on the establishment of a manufacturing unit of heat exchange tubes. However, additional opportunities for localization exist across the value chain of heat exchanger tubes production. These opportunities include: 

  • Design: establish heat exchanger tube design office in Saudi Arabia capable to customize for local demand
  • Input materials: increase localization of steel strips and coils
  • Production: establish production facility for welded and seamless tubing for heat exchangers
  • Testing and assembly: establish testing and certification services for hear exchange tubing
  • Testing and assembly: establish technical assistance services for the assembly stage
  • Lifecycle management: setup after-sales support and technical assistance services, including inspection, testing, maintenance and repair

Opportunity Details

Industrial and Manufacturing
Industrial Equipment & Spare Parts
To be determined by the investor
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

Investment Model

Model: Opportunity to consider different operating models:
  • Opportunity to consider different operating models:
  • Joint venture with local player

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