This opportunity entails localizing the value chain of investment casting to serve KSA and GCC energy sectors.
Investment casting is one of five metal techniques (closed-die forging, sand casting, open-die forging and rolled-ring forging) used to manufacture energy products in KSA.
In KSA, investment casting is driven by turbines, motors (electric motors casing), pumps (casing, impellers, stuffing box, discharge head, bowl and suction pipes), gas compressors (stainless steel and nickel-based, alloy number 214), valves (gate, butterfly, globe and check valves) and gears.
In 2016, KSA demand for investment casting was valued at USD 254 Mn (26% of all five techniques used to manufacture energy products) and estimated to be 79 Ktpa (33% of all five techniques used to manufacture energy products) broken down by the following categories: pump: 32.6 ktpa, electric motors: 22.1 ktpa, gate valve: 7.2 ktpa, turbines: 6.4 ktpa, butterfly valve: 2.8 ktpa, gears: 2.7 ktpa, check valve: 2.5 ktpa, globe valve: 1.6 ktpa and compressor (gas): 1.1 ktpa.
Demand for investment castings in KSA is forecasted to increase at an annual growth rate of 3% to reach 119 ktpa by 2030.
Beyond the KSA market, investors in Saudi Arabia have the opportunity to tap into the large regional market in the GCC which is expected to witness strong growth fueled by oil and gas production (expected to increase from 73 ktpa in 2017 to 107 Ktpa by 2030).
The increase in demand for investment casting and the limited presence of local players coupled with the Governments push for localization presents a great opportunity for the private sector to invest in establishing manufacturing investment casting plants to serve the KSA and GCC energy sectors.
Beyond manufacturing plants for investment casting, other opportunities exist across the value chain including:
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