Tokyo, Japan - April 23, 2007

Yokogawa Expands Business Activities in Saudi Arabia, Opening Two Companies and Building New Facilities

Yokogawa Electric Corporation has established two companies in the Kingdom of Saudi Arabia. Yokogawa Saudi Arabia Limited is engaged in engineering and manufacturing of process control solutions as well as R&D. Yokogawa Services Saudi Arabia Limited provides after-sales services and training services of Yokogawa systems and products, construction and installation services related to instrumentation and life-cycle maintenance services. This multi-million US$ investment features 10,000m2 of built-up facilities and employs more than 200 professionals. This expansion enables Yokogawa to effectively support the booming mega-sized oil, gas and petrochemical projects in Saudi Arabia, and to contribute to the Kingdom's development program.

Background

Yokogawa has been active in the Kingdom since the early 1980s and established Yokogawa Middle East in Bahrain in 1990. Yokogawa has succeeded in gaining the confidence of customers thanks to the high reliability of Yokogawa products and the professionalism of its employees. Now Yokogawa is spearheading a proactive Saudization policy both contributing to the Saudi economy and providing high-quality local services for the largest market for Yokogawa in the Middle East. The policy objectives include the employment and development of Saudi nationals, technology transfer and procurement of local materials. Additionally Yokogawa provides high-quality local services, including on-call services on a 24/7 basis, system engineering, integration, start-up, commissioning, construction work, modernization of process control systems and customer training. 

Profile of the Two Companies

Yokogawa Saudi Arabia Limited started its operation on December 7, 2006 with a registered office in Al-Khobar. The company's new facilities will be located at the Science Park of the King Fahd University of Petroleum & Minerals, Dhahran with 150 employees and a total land area of 10,000m2. This is to be expanded to 18,000m2, and the built-up area of 4,000m2 is to be expanded to 7,000m2.

Yokogawa Services Saudi Arabia Limited is a Joint Venture of Yokogawa and Gas Arabian Services, long-term partner of Yokogawa in Saudi Arabia. Operating since April 2, 2007 with a registered office in Al-Khobar, the company's new facilities will be located in the Support Industries Area of Al-Jubail with 50 employees, a total land area of 5,000m2, and a built-up area of 2,000m2 that is to be expanded to 3,000m2.

The two companies are led by Akira Ogawa as President and CEO, the present President and CEO of Yokogawa Middle East. Yokogawa will expand the existing branch office in Yanbu, while extending the network to Jeddah and Riyadh.