Jubail & Yanbu Review 2015

EagleBurgmann ... securing contracts

EagleBurgmann ... securing contracts

Turnover grows six-fold in Saudi

EagleBurgmann has won multi-million-dollar equipment supply and maintenance contracts in the kingdom’s oil and gas, refining, chemicals, power and water sectors

Although EagleBurgmann has been doing business in Saudi Arabia for over 30 years, in late 2009 the company moved to a new manufacturing, sales and service facility in Al Khobar, and since then, the company’s turnover has grown nearly six-fold as it continues to increase its presence in the kingdom.

Key to this growth was the gaining of local manufacturer status (9COM) in 2010 with Saudi Aramco for its range of high end mechanical seals, vital to the smooth operating of highly critical pumps and compressors on Aramco’s many sites.

In 2011, Aramco also issued a 9COM to EagleBurgmann for the manufacturer of industrial gasket products in the kingdom.

In addition, EagleBurgmann also gained recognition as a local manufacturer and service supplier to Saudi Basic Industries Corporation (Sabic), which can be measured by equipment supplied as well as local projects completed on many Sabic affiliate sites such as Safco, PetroKemya, Ibn Rushd, Saudi Kayan, Ibn Sina, Kemya, Yansab, Sharq amongst many others.

Further development to meet growing customer needs came with the opening of two regional sales and service operations in 2011, in Jubail and Yanbu respectively. A sales office was also opened in Jeddah.

"Jubail, in the Eastern Region, has witnessed dynamic growth in recent years with the expansion of existing Sabic affiliates, as well as construction of new grass root companies such as Satorp and Sadara.

"So to support our growing customer base in this vitally important area, EagleBurgmann set up a new sales and service centre," says a spokesperson at EagleBurgmann Saudi Arabia.

EagleBurgmann Saudi Arabia is a joint venture between EagleBurgmann and GAS Arabian Services.

The success of contract bids for projects such as Sadara and Satorp, as well as the growth of business opportunities with Ma’aden, the government owned mining and minerals company, has meant the Jubail service centre is an important part of the EagleBurgmann service network in the kingdom, he explains.

Shortly after the opening of the Jubail facility, EagleBurgmann opened a second sales and service centre in Yanbu, Saudi Arabia’s second biggest petrochemical and refining zone, so as to cater to its growing customer base there.

EagleBurgmann has been successful in the winning of various multimillion dollar equipment supply and maintenance contracts across the kingdom in the oil and gas, refining, chemicals, power and water sectors, including both the prestigious Sadara and Satorp projects, where the company’s global expertise on similar contracts played a big role in securing agreements.

Satorp, a joint venture between Aramco and Total, awarded EagleBurgmann contracts that include the supply of mechanical seals, supply of operational mechanical seal spares, as well as a service contract for the maintenance of over 55 per cent of the refinery seal population.

Sadara, a joint venture between Aramco and Dow Chemical Company, represents the largest ever foreign direct investment in the Saudi petrochemical industry. EagleBurgmann was awarded the mechanical seal package for all API pumps utilised on this project, plus the supply of some critical dry gas seals, as well as supply of operational mechanical seal spares.

A major challenge to the EagleBurgmann’s growth plans is the in-kingdom drive by the Saudi Arabia government to nationalise the workforce (Nitaqat), which involves companies meeting stringent and compulsory targets in employing Saudi nationals.

EagleBurgmann has embraced this and has actively recruited and trained Saudi nationals, utilising them in every area of the business, and holds ‘Platinum Status’, the highest Nitaqat level, and has recently been recognised by the Saudi government for the company’s commitment to the Nitaqat programme.

More Stories