In 2010 we have added a new service to our portfolio. In our new Jubail facility we started
assembly for some of our main principals. This will
result in three main advantages.
The first is cost. As local labour
rates are considerably lower than in the USA or Europe,
the labour intensive process of assembly is more cost
effective in KSA. On top of that, where components are
sources from Asia, shipping cost can be reduced by
shipping these parts directly to KSA. In addition, some
of the parts can nowadays be sourced from within KSA.
The second advantage is local content.
This gives us a competitive advantage with major
customers like Saudi Aramco, who actively stimulate
economic growth in KSA. This advantage can be expressed
in an allowed higher margin and long term supply
And thirdly speed. Under current market conditions many
suppliers have reached their capacity limits. By
shifting part of the manufacturing process to bfim
additional capacity is created and deliveries can be
In the longer term we intend to build
on the assembly experience to offer Repair & Maintenance
services for the products that we have supplied.
We are fully approved by the Royal Commisssion & Saudi