CHINT’s Localization Manufacturing Strategy Gains Momentum in Saudi Arabia

In an era marked by accelerating global efforts towards sustainable development and energy transition, Saudi Arabia stands at the forefront of embracing innovative solutions to reshape its energy landscape.

Partnering with international leaders like CHINT, the Saudi Electricity Company (SEC) is committed to achieving net zero emissions by 2050, exemplifying a profound shift towards clean and sustainable energy practices. As CHINT accelerates its localization manufacturing and provides comprehensive smart power solutions tailored to Saudi Arabia’s evolving needs, the kingdom embarks on a transformative journey towards a smarter, greener future.

From pioneering joint ventures to showcasing cutting-edge technologies at prestigious events like the Saudi Arabia Smart Grid Conference, CHINT’s contributions underscore its dedication to advancing the kingdom’s energy sector and driving sustainable development in the Middle East.

1. Saudi Electricity Company Partners with Leading Enterprises like CHINT to Commit to Net Zero Emissions

During the United Nations COP28 Climate Change Summit held in Dubai on December 6, 2023, the Saudi Electricity Company (SEC) announced an ambitious goal: to achieve net zero emissions by 2050.

Acknowledging the significant contribution the company has made in providing electricity, SEC recognizes the crucial responsibility it holds in addressing climate change and achieving carbon neutrality.

To this end, SEC has devised a sustainable environmental strategy aimed at laying a solid foundation for environmental practices through measures such as improving emission efficiency in energy projects and developing the transmission network into a smart grid.

It is noteworthy that SEC is not alone in its journey towards carbon neutrality. The company has stated that it has entered into seven agreements and memoranda of understanding with several leading local and international companies, including CHINT Saudi Arabia. These partners will provide SEC with technical support and solutions in areas such as clean energy, renewable energy stations, and smart metering projects, collectively propelling Saudi Arabia towards its carbon neutrality goals.

CHINT Saudi Arabia, as a significant branch of CHINT in the Middle East, has been dedicated to providing advanced smart energy solutions locally. This collaboration with SEC will further leverage CHINT’s expertise in areas such as smart grids and new energy applications, aiding Saudi Arabia in its energy transition and sustainable development efforts.

2. Gaining International Reputation with Saudi ECB Project

As Saudi Arabia progresses with its “Vision 2030” and energy transition strategies, the oil-rich nation is swiftly moving towards a future of intelligent and sustainable energy. In this transformative journey, CHINT, with its outstanding technology and product quality, has successfully secured the supply contract for External Case Circuit Breakers (ECB) for the Saudi smart meter project, contributing Chinese expertise to Saudi Arabia’s energy transformation.

On June 19, 2020, CHINT delivered exciting news from the Saudi capital, Riyadh: CHINT Electric successfully signed the supply contract for ECB in the Saudi smart meter project.

According to the contract, CHINT Electric will provide external case circuit breaker products worth over 100 million RMB for the replacement of circuit breakers in all smart meter projects in Saudi Arabia.

The signing of this contract not only makes CHINT the largest supplier of this product but also signifies another significant breakthrough in CHINT’s deep layout in the Saudi market and its internationalization strategy.

As one of the world’s largest oil-producing countries, Saudi Arabia’s implementation of its energy transition strategy has profound implications for the global energy market. The smart meter system, as an important part of energy transition, has garnered significant attention in its bidding and implementation processes.

In the bidding for the Saudi smart meter system, China’s State Grid and Saudi AF emerged as the successful bidders for the general contracting project.

Subsequently, they initiated the bidding process for the ECB project, and CHINT, leveraging its professional expertise in circuit breakers and extensive international project experience, successfully won this crucial contract.

The ECB project is not only one of the world’s largest single-scale smart meter projects but also a key component in Saudi Arabia’s energy transition and the construction of a smart grid.

The circuit breaker products provided by CHINT will be widely used in Saudi Arabia’s smart metering systems, offering more reliable and efficient protection and control functions for Saudi’s power system.

Moreover, CHINT will provide comprehensive service support for the project, including installation training, troubleshooting, operation maintenance training, and after-sales service, ensuring the smooth operation and long-term maintenance of the project.

It is worth mentioning that, with its outstanding performance in the Saudi ECB project, CHINT has successfully entered the list of key suppliers for the State Grid Corporation of China’s “Belt and Road” initiative.

3. Accelerating Localization Manufacturing in Saudi Arabia

As CHINT delves deeper into the Saudi market, it is accelerating its localization manufacturing layout in Saudi Arabia. Through collaboration with local renowned enterprises, CHINT is not only showcasing its technological prowess but also demonstrating a profound understanding of the energy future in Saudi Arabia and the Middle East region.

In November 2022, Saudi’s Ajlan & Bros Holding Group and CHINT held a grand signing ceremony. The two enterprises announced the establishment of a joint venture in Saudi Arabia, focusing on the production of low, medium, and high-voltage electrical equipment and providing power solutions. This significant move signifies a solid step forward for CHINT’s localization strategy in the Saudi market.

The establishment of the joint venture not only meets Saudi Arabia’s demand for localized manufacturing of electrical products but also fully utilizes the technological, research, and financial advantages of both parties. By combining CHINT’s expertise in smart energy with Ajlan & Bros Holding Group’s profound market foundation in Saudi Arabia, this joint venture will inject new vitality into the development of Saudi Arabia’s electrical and energy-related industries.

Just six months later, CHINT achieved another major breakthrough in the Saudi market. In the first half of 2023, CHINT teamed up with Arabian Transformers Co. (ATC), a Saudi transformer manufacturer, to establish another joint venture. This collaboration resulted in the establishment of the first CHINT Saudi Ring Main Unit (RMU) and Medium Voltage (MV) products manufacturing factory in Saudi Arabia.

This factory, rooted in the Saudi local market, is committed to providing advanced products and services locally. Through localized production and research and development, CHINT will further meet the Saudi market’s demand for high-quality, high-performance electrical equipment. Additionally, the factory’s production capacity will gradually cover GCC countries and neighboring nations, significantly enhancing CHINT’s localization manufacturing capabilities in overseas markets.

Through close collaboration with local enterprises, CHINT will further deepen its market layout in Saudi Arabia and the Middle East region, contributing more strength to the sustainable development of the global energy market.

4. Advancing Comprehensive Smart Power Solutions in Saudi Arabia

In December 2023, during the 11th Saudi Arabia Smart Grid Conference (SASG 2023) held in the capital city of Riyadh, CHINT showcased its latest intelligent ecological energy solutions.

One of the most notable solutions presented was its Intelligent Microgrid solution. This solution optimizes the utilization and storage of renewable energy on-site in large industrial parks. Through advanced control technology, it achieves high efficiency and low cost in energy utilization. This innovative technology not only enhances the economics of energy use but also strengthens the resilience and reliability of energy systems.

Furthermore, CHINT demonstrated its latest Intelligent Street Lighting system. This system seamlessly integrates into smart cloud platforms, elevating the intelligence level of public lighting and enhancing public safety through data analysis.

Simultaneously, CHINT also launched an end-to-end Intelligent Water Metering Management system. This system enables real-time monitoring of water resource usage, providing robust support for water conservation management and resource optimization.

Energy storage solutions were also a highlight of CHINT’s showcase. With the widespread application of renewable energy, grid stability has become an urgent issue. CHINT’s energy storage solutions effectively promote grid stability through intelligent regulation and energy storage, providing solid technical support for the widespread application of renewable energy.

Through these comprehensive smart power solutions, CHINT continues to demonstrate its commitment to advancing the energy landscape in Saudi Arabia, contributing to a more sustainable and efficient future for the country’s power infrastructure.