Hanwha Power Systems has signed a land lease agreement with King Salman Energy Park (SPARK) to establish a new compressor packaging and service center spanning approximately 11,600 square meters.
The facility will be located within SPARK, a premier global energy industry hub 100 percent owned by Saudi Arabia’s national oil company ARAMCO.
The packaging shop and service center are scheduled to start construction in the first quarter of 2026 and aim to begin commercial operations in the first half of 2027.
The agreement was signed at ADIPEC 2025, the world’s largest oil and gas exhibition currently being held in Abu Dhabi, UAE.
Hanwha Power Systems and SPARK Partnership to Boost Middle East Operations
Through this agreement, Hanwha Power Systems aims to enhance its business competitiveness in the Middle East, where there is strong demand for compressors and related equipment across the oil & gas, plant, and clean energy sectors.
According to the statement, this aligns with the Saudi government’s direction for localizing the supply chain, and moreover, Hanwha Power Systems is expected to contribute to the development of the local equipment industry by creating jobs locally and providing skilled personnel.
Hanwha Power Systems has been supplying high-quality compressors to various industrial sites worldwide. As of the first half of 2025, it has achieved a cumulative sales volume of 9,000 units of compressors and industrial equipment.
A substantial number of these units have already been sold to the Middle East and are now fully operational, primarily supporting industries such as oil & gas, carbon capture and utilization (CCUS), and air separation.
Hanwha Power Systems’ newly constructed packaging and service center in Saudi Arabia plans to provide total care for customer equipment. While quickly responding to customer demands and enhancing customer satisfaction, it aims to strengthen market competitiveness by localizing equipment packaging to ensure the timely supply of products that meet customer requirements.
Furthermore, it plans to solidify partnerships with local companies active in various industries, including the oil & gas and power generation markets.
Soo-kyoung Kim, Head of AM Business Unit at Hanwha Power Systems, stated that, “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.”
Nabil Chaachou, Vice President of Strategy & Business Development at King Salman Energy Park (SPARK), said that, “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.”
