A Landmark Agreement in the Heart of SPARK
On the 4th of the month, **Hanwha Power Systems signed a land lease agreement with SPARK** to build a cutting-edge compressor packaging and service center spanning approximately **11,600㎡** within **King Salman Energy Park (SPARK)** — a globally recognized hub for the energy industry, wholly owned by **Saudi Arabia's national oil company, ARAMCO**. This strategic development marks a significant milestone for the company, positioning it directly within Saudi Arabia’s thriving industrial ecosystem.
Notably, the agreement was sealed at **ADIPEC 2025**, the world’s largest oil and gas exhibition currently captivating industry leaders in Abu Dhabi, UAE. Scheduled to break ground in the first quarter of 2026, the new facility aims for commercial operations by the first half of 2027. This ambitious timeline reflects Hanwha Power Systems’ determination to meet growing demand for compressors and related equipment in the **oil & gas, plant, and clean energy** sectors across the Middle East.
Driving Innovation, Localization, and Growth
This deal perfectly aligns with the **Saudi government’s vision** of localizing the supply chain. By establishing a local facility, Hanwha Power Systems will not only ensure faster delivery and tailored solutions but also contribute to **job creation** and the development of skilled personnel within the Kingdom. Strengthening business competitiveness in the Middle East isn’t just about meeting demand — it’s about embedding innovation and service excellence where it’s needed most.
As of the first half of 2025, Hanwha Power Systems has supplied over **9,000 units of compressors and industrial equipment** worldwide, with a significant portion operating in the Middle East. These machines are at work across varied sectors, from **carbon capture and utilization (CCUS)** to **air separation**. The new facility will offer **total care** for customer equipment, ensure timely delivery through localized packaging, and deepen partnerships with local oil & gas and power generation companies.
Voices of Vision and Commitment
Soo-kyoung Kim, Head of AM Business Unit at Hanwha Power Systems, emphasized,
> “Securing a foothold in the Middle East, where our major clients are concentrated, is essential for business expansion. We will ensure cost reduction, maximized efficiency, and stable operation throughout the lifecycle of the compressor equipment for local Middle Eastern clients.”
Echoing these ambitions, Nabil Chaachou, Vice President of Strategy & Business Development at **SPARK**, highlighted,
> “This agreement reflects SPARK’s commitment to attracting high-value industrial investments that advance the localization of the energy supply chain. Hanwha Power Systems’ new facility strengthens our ecosystem by enabling advanced manufacturing and service capabilities that will create jobs, drive technology transfer, and support sustainable growth in the Kingdom.”
Powering Tomorrow’s Energy Landscape
Hanwha Power Systems’ leap into **King Salman Energy Park** is more than an infrastructure project — it’s a statement of intent, a pledge to merge global expertise with local opportunities. By positioning itself at the center of the Middle East’s energy revolution, Hanwha is setting the stage for a future where technology, sustainability, and localized industry meet to drive progress not only for Saudi Arabia but for the entire region.
