This opportunity entails localizing the value chain of open-die forging to serve KSA and GCC energy sectors.
Open-die forging is one of five metal techniques (investment casting, sand casting, closed-die forging and rolled-ring forging) used to manufacture energy products in KSA.
In KSA, open-die forging is driven by turbines (Pelton, Turgo and Crossflow), electric motors (single phase and three pase AC), wellhead equipment (casing head and spools), pumps (positive displacement, impulse, velocity, gravity, steam and valve-less pumps), ball valves (single, three-piece, split, top entry and welded), gas compressors (positive displacement-reciprocating, rotary dynamic-centrifugal and axial) & blowout preventers (annular and ram).
In 2016, KSA demand for open-die forging was valued at USD 304 Mn (32% of all five techniques used to manufacture energy products) and estimated to be 47 Ktpa (20% of all five techniques used to manufacture energy products) broken down by the following categories: Ball valves: 13 Ktpa, Wellhead equipment: 11.2 Ktpa, Electric motors: 7.4 Ktpa, Turbines: 6.4 Ktpa, Pumps: 3.8 Ktpa, Blowout preventers (ram): 2.7 Ktpa, Blowout preventers (annular): 1.6 Ktpa and Compressor (gas): 1.3 Ktpa
Demand for open-die forging in KSA is forecasted to increase at an annual growth rate of 3% to reach 62 Ktpa by 2025.
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 44 Ktpa in 2017 to 56 Ktpa by 2025).
The increase in demand for closed-die forging 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 state-of-the-art forging facilities (including next generation forging).
Beyond forging facilities for closed-die forging, other opportunities exist across the value chain including:
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