Saudi Power Transformers Co. (SPTC), a subsidiary of Electrical Industries Co., has secured a contract worth 1.4 billion riyals ($376.3 million) from Saudi Electricity Company (SEC) to localise and deliver transformers and reactors.
Under the 84-month agreement, SPTC will supply extra high-voltage and high-voltage transformers and reactors to SEC, the kingdom’s main power utility.
According to the contract terms, SEC may increase the value by up to 40% of the original agreement, potentially raising the total to about 2 billion riyals. SEC has committed to executing at least 70% of the contract’s value.
The deal supports Saudi Arabia’s efforts to localise key power infrastructure manufacturing and expand its electricity grid in line with rising demand and Vision 2030 economic diversification plans.
Electrical Industries Co., listed on the Saudi Exchange (Tadawul), is one of Saudi Arabia’s leading suppliers of electrical equipment. SEC, majority-owned by the Public Investment Fund, is the largest power utility in the Middle East.
