Strengthening Strategic Position with Inclusion on Saudi Arabia's Mandatory Local Procurement List
SNT Energy, through its wholly owned Saudi Arabian subsidiary SNT Gulf, has signed a localization agreement for HRSG (Heat Recovery Steam Generator) with the Saudi government.
With HRSG products now listed on the "Mandatory Product List" under the Saudi government's localization policy, SNT Energy has secured a favorable position for future entry into the Saudi public procurement market.
On May 29, SNT Energy announced that SNT Gulf had signed an "HRSG Localization Agreement" with the Local Content & Government Procurement Authority in Saudi Arabia.
The signing ceremony took place on May 28 at the main office of the Ministry of Energy in Riyadh, Saudi Arabia. Key Saudi government officials attended the event, including Ahmad Al-Zahrani, Deputy Minister of Energy, and Abdulrahman bin Abdullah Al-Semari, CEO of the Local Content & Government Procurement Authority. From Korea, SNT Energy President Shin Kyungin and SNT Gulf CEO Oh Youngseok attended and participated in the signing.
Through this agreement, SNT Gulf's local production capabilities and technological expertise for HRSG products have been officially recognized, resulting in their inclusion on the Saudi government's Mandatory Product List. This list is a core component of the country's localization policy, designed to encourage domestic industry development and promote key national industries. Products on this list receive additional points during public bidding processes.
To be included on the Mandatory Product List, companies must undergo a comprehensive evaluation of their investment track record, technological capabilities, and production facilities, as well as pass a stringent on-site inspection. SNT Gulf completed its final on-site inspection in April, which led to the signing of this agreement.
Previously, in November 2022, SNT Gulf signed a "Corporate Purchase Agreement" for Air Cooler products with Saudi state-owned oil company Aramco. In January 2023, the company began the first phase of plant expansion to locally produce HRSG and Surface Condenser equipment for nuclear power facilities, with a second phase of expansion scheduled for January 2025.
A representative from SNT Energy stated, "This agreement is an official recognition by the Saudi government of SNT Energy's technological capabilities and commitment to local investment," adding, "It will serve as a turning point in strengthening our strategic position in the HRSG sector, following our achievements in Air Coolers." The representative also said, "We will continue to align with the Saudi government's 'Vision 2030' policy and contribute to the development of the local industry."
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