Hanwha Power Systems signed a land lease with SPARK on 4 November to build a compressor packaging and service center in King Salman Energy Park (SPARK). The site will cover approximately 11,600 m². SPARK is a global energy hub fully owned by Saudi Aramco.
Construction will start in the first quarter of 2026. Commercial operations are planned for the first half of 2027. The agreement was signed at ADIPEC 2025 in Abu Dhabi, UAE.
The new center will strengthen Hanwha’s business in the Middle East. Demand for compressors and related equipment is high in the oil & gas, plant, and clean energy sectors. The project supports Saudi Arabia’s goal to localize the supply chain. It will also create local jobs and train skilled personnel.
Hanwha Power Systems has supplied high-quality compressors to industrial sites worldwide. By mid-2025, it sold 9,000 units. Many of these are already in use in the Middle East, supporting industries such as oil & gas, carbon capture (CCUS), and air separation.
The Saudi facility will provide full service for customer equipment. It will respond quickly to customer needs and improve satisfaction. By localizing packaging, Hanwha will ensure timely delivery and strengthen market competitiveness. The company also plans to partner with local firms in oil & gas and power generation.
Soo-kyoung Kim, Head of AM Business Unit at Hanwha, said: “Securing a foothold in the Middle East is essential. We will reduce costs, boost efficiency, and ensure stable operation for local clients.”
Nabil Chaachou, Vice President of Strategy & Business Development at SPARK, added: “This agreement attracts high-value industrial investments. Hanwha’s new facility will create jobs, transfer technology, and support sustainable growth in the Kingdom.”
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