Velan ABV news
Velan ABV in Saudi Arabia: New challenges, New Opportunities
Back in 2015 Saudi Arabia launched a challenging economic program: the Vision 2030 to develop within the country 70% of its’ supply chain for their Oil & Gas business.
These could start from assembly and testing of products and then back to the supply of welding, machining and procurement of raw materials locally.
The first companies to join were the manufacturers of long lead items like Gas Turbines and Compressors. Then in 2018, the program was extended to heat exchangers and valves. Now, after 5 years, such Vision is developing into an exciting business opportunity for each valve manufacturer.
Velan ABV decided to jump into this huge market for valves, over $500M/yr in Ball/Gate/Check, leveraging its experience with Aramco and the wide portfolio of Velan.
After some scouting, we found the perfect partner in Eastern Style Co. The company is a leading Trading, civil works, rental equipment and manpower provider in the region. They have extensive experience in government, private and municipality works and are part of Al Shaikh Group, leader of communication network in KSA.
During the recent IKTVA Forum held in Dammam on February 24th and 25th,2020, Velan ABV and Eastern Style signed an agreement with the aim to localize a manufacturing facility of Velan valves in the Saudi market. This partnership will allow Velan ABV to join the CPA (Corporate Procurement Agreement) with Aramco and enter in the short list of their qualified and preferred suppliers. At the same time, the agreement is aligned with IKTVA’s philosophy of creating additional domestic value through localization of goods and services alongside job creation which will enable citizens to participate and grow in a rapidly developing economic environment.
Speaking at the signing ceremony, the General Manager of Eastern Style Co., Mr. Fahad M. Al-Ohaly, said:
“This partnership would give Velan entry into one of the largest markets in the world with the status of a Preferred Supplier and at the same time help bring to the Kingdom the expertise of a company who is a leader in this business"
As Chief Executive Officer of Velan ABV, Paolo Ranieri strongly believes that this partnership will disclose a bright future for both companies in KSA. The initiative will involve setting up the most efficient processes based on our experience and will enhance local human capital skills.
Our goal is to be close to our customers and fulfil our commitment to them by creating value locally and providing them with innovative solutions that best fit their needs. Our joint team has all the skills and commitment to make this adventure a success.