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Harmony Agencies:
Five knowledgeable sources said Saudi Arabia had taken steps to encourage rival firms to offer competing offers to win lucrative power plant jobs. According to Reuters,
Saudi Electricity Company has qualified at least two companies, Power Systems and Compression Parts, to provide services or spare parts for some of GE's more than 50 GE turbines.
Discussions are also underway with two other companies
According to industry sources and databases, qualifying these companies for the first time allows Saudi Electricity to break General Electric's control over these companies by encouraging others to bid competitively. For maintenance of the turbo fleet
Saudi Arabia, the world's largest oil producer, wants to rationalize spending, seeking to reduce dependence on oil, reduce budget deficits and create jobs. As part of the "Vision 2030" reform plan
A source close to the work of Saudi Electricity said that the kingdom also wanted to get the best possible prices in major contracts with large companies. Others to participate in power plant service offerings, rather than rely on GE
The sources pointed out that the Saudi Electricity Company had already launched a competition for a previous generation of turbines known as Class E.
She noted that after the start of the bidding, GE made fewer jobs and costs decreased by about 40%.
One source stated that for bidders, the qualification process allows them to sell their products to other facilities and even to other sectors. On his rehabilitation.
In response to Reuters questions, "GE's current CF class units are still covered by long-term service contracts."
General Electric CEO John Flanery said that utility revenues were important in restoring the growth of GE's electric business with revenues down 45 percent from last year.
The company's electricity business, which produces gas, coal and nuclear power plants, is facing a sharp decline in new plant orders. Its services, General Electric released Videos posted on YouTube last May indicated that it was offering high-tech updates on turbines manufactured by Siemens and Mitsubishi Hitachi Power Systems.
According to Saudi Electricity, Saudi Electricity has not yet signed any major contracts for the new F-Class turbines.
According to a source close to the history of GE services in Saudi Arabia, some of the recently purchased F-5 turbines could not be the subject of long-term agreements because of the higher prices for services. Turbine in
In addition to these two service companies, two companies, Cromalui, based in Palm Beach Gardens, Florida, and Masoud John Brown in Dubai, are negotiating to qualify to work on the C-Series turbines in the US. Saudi Arabia
. In Saudi class E turbines.
Masood shareholders John Brown agreed on an investment that would allow the company to maintain some of the C-F components in its Dubai facilities. "The company plans to present this to Saudi Electricity as a way to" kick-start "the previous formal qualification process, said company CEO Brian Wadeel in an e-mail message
Cromaloy has stated that he was considering a major investment in the long term.
"We are looking at parts maintenance or long-term component manufacturing, which is what Saudi Electricity is asking us for," Jeff said. Roman, spokesperson of the company.
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