Facilities to fill Saudi Arabia’s manufacturing gaps

Saudi Arabia

Khaled Alruwaili, CEO of Tuwaiq Casting & Forging Company (TuwaiqCF), talks to The Energy Year about developing fully integrated manufacturing capabilities and the company’s ambitions to become an enabler for the Saudi industrial ecosystem. TuwaiqCF is a manufacturer of equipment components for the oil and gas and maritime sectors.

How is TuwaiqCF helping to further Saudi Arabia’s ambitions to reinforce domestic manufacturing?
The government mandated years ago that key inputs – particularly those for large equipment such as compressors, turbines, valves, ship engines, rigs and pumps – needed to be manufactured domestically. International companies, however, could not find such capabilities in Saudi Arabia. To manufacture advanced machinery, specialised facilities are needed for casting and forging, which were missing in the region. This gap in capabilities was a major reason why large players couldn’t localise production.
Recognising this issue, end users such as Aramco and SABIC started addressing the shortage, and this led to the creation of TuwaiqCF. We started this company to close the capabilities gap and make it possible for the oil and gas, maritime, and even the renewables and nuclear sectors, to benefit from domestic manufacturing.

What makes your approach to localisation unique in Saudi Arabia?
TuwaiqCF is driving localisation by manufacturing equipment with Saudi materials, labour and facilities. Unlike big companies that simply assemble equipment locally, we provide a fully integrated solution, from melting to machining, all in one facility.
Our capabilities are unmatched in the region, with melting capabilities for iron and stainless steel, advanced casting lines and the largest open-die forging press in the Middle East. We can meet the demand for domestic manufacturing as the power, chemicals and renewables sectors expand in line with Vision 2030.
TuwaiqCF’s facility is built to meet future needs and enable key sectors to localise their production more effectively. The factory aims to produce 60,000 tonnes per year, the majority of which will be supplied to domestic and foreign businesses in the oil and gas sector and other industries.

When will TuwaiqCF officially start its operations?
The project kicked off in February 2020 when we selected our partner, Doosan Enerbility, and we expect to begin production in mid-2025. The key challenge was choosing the right partner. After careful consideration, we decided to collaborate with Doosan, a leading South Korean group, because they brought extensive expertise in casting and forging, as well as EPC capabilities. They are building the plant, providing the technology and serving as the project’s contractor.

Why did you choose Ras Al Khair for the location of your plant?
Ras Al Khair was selected because of its rapid growth and strategic location. The region is expected to expand, as is its iron sector, and there is ample room for more growth. Proximity to the port allows for easy exporting, and the Royal Commission of Jubail and Yanbu is developing a business cluster around us that will bring customers closer and create an ecosystem with numerous advantages for us and our partners.

What steps are you taking to ensure your products meet international standards?
Meeting the highest international standards is crucial, and the API and ISO qualification processes are extensive. We also work closely with customers to ensure their standards are met. For example, when we began our partnership with Siemens Energy, their team visited the site to help us meet their specifications.
Our approach is to integrate with the quality systems and qualification processes of our customers. This involves selecting the right materials and obtaining the right certifications for our facilities and teams. For one of the products we are manufacturing with Siemens Energy, the qualification process will take three years. Meeting international standards requires significant investments to build strong systems across all areas.

How do you see TuwaiqCF contributing to Saudi Arabia’s renewable generation targets?
We want to participate in the renewable energy sector. We provide casings, shafts and other components to GE and other companies that manufacture wind turbines, and we see opportunities to participate in nuclear energy projects once they are launched. Hydrogen is also part of our plans, and we believe we can play a significant role in the segment.

Could you provide an overview of your expansion plans?
Expansion for us means both new capabilities and new markets. We are anticipating growth in the nuclear, maritime and military segments, where we are already engaging with potential clients. In addition, Saudi Arabia Railways has approached us because they need to secure train wheels more quickly and efficiently, and this could be a significant part of our future growth.

What geographical markets are you targeting in the GCC and further afield?
We are targeting global markets, and we received our first export order from a key customer in 2024. As our customers operate internationally, we aim to support them by exporting products until they localise their facilities in Saudi Arabia. This global approach aligns with Vision 2030, and we are intent on serving the domestic market and also establishing TuwaiqCF as a key industrial supplier in the global arena.

What is your assessment of the synergies among your stakeholders – Aramco, Dussur and Doosan – and where will TuwaiqCF seek growth after 2030?
The synergies among Aramco, Dussur and Doosan are integral to TuwaiqCF’s success. With a 10-year agreement for technical support from Doosan, our collaboration with Aramco will help build the company’s systems, ensuring long-term stability. Aramco and Doosan are committed to technology transfer, which will help us localise our operations.
Our vision is to build TuwaiqCF as a fully Saudi company, eventually operated by Saudi talent. While we hired experts from around the world to get started, the goal is to transition to a completely Saudi workforce within five years.
As TuwaiqCF grows, our capabilities will contribute to the broader industrial ecosystem, helping other companies and increasing the localisation scores of our partners. We are focused on long-term sustainability and growth within the oil and gas, power and maritime sectors.

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