Static Equipment Component & November 2018 Metal Eco System November 2018 - Saudi Aramcoiktva.sa/wp-content/uploads/2018/12/Static-Equipment... · 2018-12-09 · Saudi Aramco: Public

Saudi Aramco: Public

Static Equipment

Component &

Metal Eco System

November 2018

November 2018November 2018


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


Drives domestic value creation by working with suppliers for mutual benefits

Envisions to improve investment, and maximize long term economic growth and diversification

Focuses on delivering quality jobs, advancing innovation and enhancing global competitiveness

IKTVA is designed to reward Saudi Aramco’s suppliers for the use and development of local labor and sub-suppliers

Localization is a focus for the KSA – Saudi Aramco’s IKTVA program aims to achieve

70% local content by 2021


Agenda – Non-metallic

Session Title Presenter

Opening Abdullah Al-Qahtani, ID&SSD

Value Proposition 1: Weld Neck-

Flanges manufacturing Nasser Alrushoud, ID&SSD

Value Proposition 2: Blind-

Flanges manufacturingNasser Alrushoud, ID&SSD

Value Proposition 3: Socket Weld-

Flanges manufacturing Nasser Alrushoud, ID&SSD

Value Proposition 4: Ball Valves Component manufacturing SAAD M. ALSHIHA, CSD

Value Proposition 5: Gate Valves Component manufacturingSAAD M. ALSHIHA, CSD

Value Proposition 6: Check Valves Component manufacturingSAAD M. ALSHIHA, CSD


Flanges Manufacturing


Establish multiple state of the

art manufacturing facilities

to locally manufacture

Flanges:

• Weld neck flange

• Blind flange

• Socket weld flange

The opportunity

1. Current Saudi Aramco demand

is estimated at Spend value of $

200 MM from (2013-2018)

2. Forecasted spend value of

$480 MM for (2019-2028)

The business case

Source: Saudi Aramco

Flanges manufacturing represents an attractive opportunity

for localization


Flanges Manufacturing Process

Raw MaterialInspection for raw material

Cutting to desire size

Heating

ForgingHeat

TreatmentMachining

Drilling and Marking

Final inspection

Packaging and Delivery


Weld Neck Flanges

https://www.neoimpex.com


Weld Neck Flanges Historical Spend

2227

85

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

Less than 300 300-600 Above 600

Millio

ns U

SD

Historical Spend (2013-2018)

Grouped By Class

Total spend for weld neck flanges

for the past fives years is $ 135

MM


Weld Neck Flanges Forecasted Spend

28 29 29 30 31 32 33 34 35 36

$-

$5

$10

$15

$20

$25

$30

$35

$40

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Millio

ns U

SD

Total forecasted spend for weld

neck flanges for the next 10 years

$320 MM (2019-2028)


Blind Flanges



Blind Flanges Historical Spend

15 $14

$21

$-

$5

$10

$15

$20

$25


Mill

ions U

SD


Grouped By Class

Total spend for Blind flanges for

the past fives years is $ 50 MM


Blind Flanges Forecasted Spend

10 11 11 11 12 12 1313

1414

$-

$2

$4

$6

$8

$10

$12

$14

$16

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Millio

ns U

SD

Total forecasted spend for blind

flanges for the next 10 years

$120 MM (2019-2028)


Socket Weld



Socket Weld Flanges Historical Spend

8

$4

$2

$-

$1

$2

$3

$4

$5

$6

$7

$8

$9


Millio

ns U

SD


Grouped By Class

Total spend for Weld Neck flanges

for the past fives years is $ 15 MM


Socket Weld Flanges Forecasted Spend

3 3 3 3 3 3 4 4 4 4

$-

$1

$1

$2

$2

$3

$3

$4

$4

$5

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Millio

ns U

SD

Total forecasted spend for blind

flanges for the next 10 years $35

MM (2019-2028)


Valves Component

manufacturing


Establish multiple state of the

art manufacturing facilities

to locally manufacture

Valve Components:

• Ball valves

• Gate valves

• Check valves

The opportunity The business case

Source: Saudi Aramco

Flanges manufacturing represents an attractive opportunity

for localization

1. Saudi Aramco 10 year

forecasted demand

• Ball Valves = 810K units

• Gate Valve = 4.9MMunits

• Check Valve = 390K units


Valves Manufacturing Process

NDE TestingCasting

InspectionRough

MachiningFinished

Machining

Service Treatment

Welding/ Grinding

Components / Parts inspection

Valve Assembly

Hydro & Pneumatic

testing

Painting & Coating

Final Inspection, Packing & Sh


Valves Manufacturing Process: Casting Inspection & NDE Testing


Valves Manufacturing Process: Rough Machining


Valves Manufacturing Process: Finished Machining

http://www.google.com.sa/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwjOs_SAiaHeAhUKtRoKHW76AEIQjRx6BAgBEAU&url=http://www.forwardalloys.com/oil_process.html&psig=AOvVaw30-4wOdoVO3yJjE_jydxKV&ust=1540538957650177

http://www.jjlyoemparts.com/sale-8473135-cnc-machined-turned-machining-turning-milling-forged-steel-laser-clad-cladding-hardfacing-gate-valve.html


Valves Manufacturing Process: Welding

http://www.lntvalves.com/media/34943/10.jpg


Valves Manufacturing Process: Components / Parts Inspection


Valves Manufacturing Process: Valve Assembly


Valves Manufacturing Process: Hydro & Pneumatic Testing


Valves Manufacturing Process: Painting & Coating


Valves Manufacturing Process: Final Inspection, Packing & Shipping


Gate Valve components to be manufactured


Ball valve components to be manufactured


Check valve components to be manufactured


Ball Valve

384

136

267

223

-

50

100

150

200

250

300

350

400

450

Less than 2" 2"-4" 4"-12" 12"-24" above 24"

Th

ou

san

ds U

nit

s 10 year forecast of Ball Valves =

810K units

Forecasted demand grouped by

size classification


Ball Valve

10 year forecast of Ball Valves =

810K units

Ball valve forecasted demand

grouped by class

11%

18%

71%

less than 300 PSI 300-600 PSI above 600 PSI


Gate Valve

10 year forecast of Gate Valve =

4.9MMunits


size classification

4,381

311 17223 4

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Less than 2" 2"-4" 4"-12" 12"-24" above 24"

Th

ou

san

ds U

nit

s


Gate Valve

10 year forecast of Gate Valve =

4.9MMunits

Gate valve forecasted demand

grouped by class

9%

12%

79%



Check Valve

10 year forecast of

Check Valve = 390K units


size classification

191.913

47.373

143.845

5.214 2 -

50

100

150

200

250

Less than 2" 2"-4" 4"-12" 12"-24" above 24"

Th

ou

san

ds

un

its


Check Valve

10 year forecast of

Check Valve = 390K units

Check Valve forecasted demand

grouped by class

17%

12%

71%



Required services to compliment localization of valves components

CladdingWeld

overlay Painting Coating

BlastingDesign

Eng.Specialist

MachiningGrinding

WeldingHeat

treatment

Specialized Service Treatment (ex :electrolessnickel plating, Tungsten Carbide Coating, & Fusion Bonded Epoxy

)


Local companies manufacturing valves are the potential customers

Local valves manufacturers

Reach out to other KSA energy companies for additional demand


Key messages

For further information on these opportunities, please contact:

Please Complete Expressions of Interest & direct all inquiries to:

Nasser Alrushoud

Saudi Aramco – Local Business Development

Steel Conversion Group

[email protected]

+966 13 679-5437

Abdullah Qahtani

Saudi Aramco – Local Business Development

Steel Conversion Group

[email protected]

+966 13 874-1756

KSA metal eco-system market is growing and requires a local manufacturing presence

Additional opportunities are available on the IKTVA website: iktva.sa

Complete expressions of interest forms for later follow-up and support

Please plan to attend presentations related to investing in KSA, land, financing, and local workforce development


Thank you

Documents

Static Equipment Component & November 2018 Metal Eco System November 2018 - Saudi Aramcoiktva.sa/wp-content/uploads/2018/12/Static-Equipment... · 2018-12-09 · Saudi Aramco: Public