Switzerland based power and automation group ABB plans to construct a new manufacturing plant for the high-voltage gas-insulated switchgear (GIS) and a transformer service center in Dammam, Saudi Arabia.

The company will invest $40m to build the two facilities on a 40,000sqm2 site.

ABB Power Products division head Bernhard Jucker said local manufacturing of the company’s GIS range in Saudi Arabia and its transformer service facility will enable it to respond to its customers’ needs.

"This decision is in line with ABB’s regional and ‘in country for country’ approach and business philosophy to locate production and service facilities closer to our customers," Jucker added.

Initially, the switchgear plant will manufacture 132 kilovolt (kV) GIS and intends to produce switchgears with higher ratings subsequently while the transformer service center is expected to support the company’s large installed base in the region.