Kobe Steel to establish a new service base for non-standard compressors and plastic mixing and pelletizing systems in Saudi Arabia

Aug. 20, 2025

Kobe Steel, Ltd.

Kobe Steel, Ltd. announces that it has decided to establish a new service base, Kobelco Machinery Solution Arabia (KMSA), in Saudi Arabia, one of the largest markets for non-standard compressors and plastic mixing and pelletizing systems.^*1 This will enable Kobe Steel’s machinery business division to improve its after-sales service system in the Middle East and provide on-site support for plant operations while staying close to customers, thereby expanding the market in this region.

Kobe Steel’s machinery business division has a proven track record of supplying a number of non-standard compressors and plastic mixing and pelletizing systems to the energy industry worldwide. In the Middle East, these products have been delivered to petrochemical plants, LNG plants, and other facilities in various countries, such as Saudi Arabia, Qatar, the United Arab Emirates (UAE), and Kuwait, and have been supporting customers’ plant operations for many years.

These are the machinery business's signature products, designed and manufactured to meet customer requirements and specifications. Since each piece of equipment is custom-made and irreplaceable, its failure will have a significant impact on plant operations. This is why prompt troubleshooting, technical support, and maintenance are so important in this sector.

With a focus on the Middle East, one of the biggest markets for the machinery business, Kobelco Machinery Middle East (KMME) was established in the UAE in 2012 as an after-sales service base for non-standard compressors and plastic mixing and pelletizing systems and has been providing customer support in the Middle East, India, and Africa.

Meanwhile in Saudi Arabia, in response to the government’s policy of promoting VISION 2030 aimed at increasing in-house production, major companies have adopted a policy of giving preference to suppliers based in Saudi Arabia in awarding service contracts involving maintenance work and dispatch of technical personnel. In light of this situation, Kobe Steel decided to establish KMSA as a new service base in Saudi Arabia, in addition to KMME in UAE, to offer a broader range of after-sales services, including on-site maintenance/repair work and dispatch of technical instructors.

Saudi Arabia is a key market in the Middle East, accounting for approximately 60-70% of overall regional sales of these products. Blessed with abundant natural resources, the country has made significant progress in the energy sector, especially petrochemical, and is projected to achieve further development across all industries, leveraging the nation’s financial power. As we respond to diverse demands from customers, such as dispatching technical instructors and conducting on-site maintenance and repairs, we aim to expand our service beyond the supply of spare parts.

About KOBELCO-X

The Kobe Steel Group, also known as the Kobelco Group, is working on the transformation into an appealing company, as set out in its Medium-Term Management Plan (Fiscal 2024–2026). As part of this effort, we are advancing an initiative called KOBELCO-X^*2, which spans a wide range of transformations. This decision to establish of a new service base in Saudi Arabia is linked to AX (ambidexterity), since it contributes to both enhancing earning power and pursuing growth.

The Group will continue to provide solutions to the needs of society by promoting the integrated use of its diverse businesses, technologies, and human resources in a unique way and move forward with its transformation initiatives in order to become a more appealing company to all of its stakeholders, with a view to a world in which people, now and in the future, can fulfill their hopes and dreams while enjoying safe, secure, and prosperous lives.

Kobelco Machinery Solution Arabia

Location:

Jubail Industrial City, Saudi Arabia

Service:

Maintenance, overhaul, dispatch of technical instructors

Scheduled establishment:

Around the end of 2025