South Korea’s Doosan Heavy to build $834mn casting and forging facility in KSA
400,000sqm facility will begin construction in 2022, with completion scheduled for Q1 2025
Doosan Heavy Industries and Construction Company, the South Korean firm, has announced that it has secured a $834 million EPC contract to build a casting and forging facility at the King Salman International Maritime Industries Complex, which is located near Jubail, in the Eastern Province of Saudi Arabia.
The contract was signed with Tuwaiq Casting and Forging, Doosan Heavy’s joint venture company in Saudi Arabia, which was established in January 2022, through a joint venture between the Saudi Arabian Industrial Investments Company (Dussur), Saudi Aramco’s wholly owned subsidiary, Saudi Aramco Development Company, and Doosan.
Once built, the new facility will have an area size of 400,000sqm and the capacity to produce 60,000 tons of casting and forgings per year. Once completed, it will be the largest facility of its type in Saudi Arabia.
Construction is scheduled to begin this year and will be completed by the first quarter of 2025, a statement from the company said.
“It is a significant feat for us to have won this contract to build Saudi Arabia’s largest casting & forging facility using our casting & forging expertise and EPC capabilities, which we steadily accumulated over the past 40 years,” said Inwon Park, CEO of Doosan Heavy’s Plant EPC Business Group.
“We also plan to actively support the small and medium-sized local companies by partnering with them to jointly target the global market for construction of such manufacturing facilities and supply of key equipment.”
The main products to be produced at the facility are the castings and forgings that go into the pumps and valves of petrochemical plants and those used on equipment for shipbuilding and offshore plants. The long-term plan is to further expand the scope to include castings and forgings for wind farms and power plants, Park added.
According to the global research & consulting firm Frost & Sullivan, the casting and forging market in the Gulf Cooperation Council countries, centring around the UAE, is forecast to grow to the size of approximately $1.8 billion per year by 2028.
