Manufacturing of mechanical seals - TAWTEEN
Transcript of Manufacturing of mechanical seals - TAWTEEN
INVESTMENT OPPORTUNITY:
Light Equipment, Business Services, & Other
Manufacturing of mechanical
seals
Executive summary
2LIGHT EQUIPMENT, BUSINESS SERVICES AND OTHERS INVESTMENT OPPORTUNITY: MANUFACTURING OF MECHANICAL SEALS
◼ Currently, all mechanical seals are purchased through distributors that source from the
international market.
◼ The intent is to establish or expand a local manufacturing company and procure directly.
◼ This could be an opportunity for an international manufacturer to establish a base in Qatar or an
existing local company to manufacture mechanical seals on behalf of an OEM.
◼ The demand for mechanical seals is driven by the Energy sector and is approximately QAR
160M/yr on average (85 percent from the Energy sector).
◼ The market demand is expected to grow by approximately 3 percent per year for the next five
years, driven mainly by new major projects (e.g., North Field expansion).
◼ Currently, there are no local manufacturers, only local distributors for mechanical seals.
◼ Producing mechanical seals locally could reduce overhead and transportation costs, and
proximity to Qatar Steel could support low-cost sourcing of raw materials.
◼ Land allocation (and potentially an empty facility) in a free zone and support for low-cost
logistics, labor, and utilities could be provided.
Sealing system industrial pump
Detailed opportunity description
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Manufacturing of mechanical seals
◼ Mechanical seals help join systems or mechanisms
together and prevent leakage.
◼ Typical types of mechanical seals include
Dry gas seals
Induction seals
Material-to-material seals (e.g., glass to metal)
Heat seals
Hydrostatic seals
Inflatable seals
Rotating face seals
Face seals.
Localization opportunity
Business scope
◼ Sourcing of raw materials (e.g., steel, coating chemicals)
◼ Manufacturing of the main types of mechanical seals used in the Energy sector for
Pumps
Compressors and turbines
Connections with rotating equipment
◼ Inspection and quality control of manufactured products
◼ Laboratory for testing and R&D of new technologies
◼ Warranty certification and maintenance instructions for operators
Out of scope
◼ Production of raw materials
Capital intensity
Low (QAR 0-10M) Medium (QAR 10-50M) High (QAR 50M+)
LIGHT EQUIPMENT, BUSINESS SERVICES AND OTHERS INVESTMENT OPPORTUNITY: MANUFACTURING OF MECHANICAL SEALS
Relevant stakeholders
Top 3 buyers Other demand
Market size
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Estimated spend (Qatar only) on mechanical seals, QAR M
Historic Forecast
Key highlights
◼ The total market size for mechanical seals is, on average, QAR 160M/yr, of which 85 percent is
driven by the Energy sector (QAR 140M).
◼ Demand is expected to increase by approximately 3 percent per year, driven by upcoming major
projects and rotating equipment maintenance.
◼ Currently, local suppliers only exist for the importation and distribution of seals, not manufacturing.
◼ A large amount of mechanical seals use patented technologies and are only supplied by OEMs or
OEM-certified manufacturing companies.
◼ Majority of mechanical seals are sourced internationally.
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2013
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2017
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160140
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160
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140 140 150 150 30180160 160
190 190
Energy
Non-Energy
LIGHT EQUIPMENT, BUSINESS SERVICES AND OTHERS INVESTMENT OPPORTUNITY: MANUFACTURING OF MECHANICAL SEALS
Energy total maintenance spend, QAR B
6 7 7 7 8 8 9 9 9 10 10
Top 3 buyers
Disclaimer
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or as a recommendation whatsoever. The user of the Information (“User”) is responsible for
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LIGHT EQUIPMENT, BUSINESS SERVICES AND OTHERS INVESTMENT OPPORTUNITY: MANUFACTURING OF MECHANICAL SEALS
Email: [email protected] | Website: https://tawteen.com.qa