Jiangsu Zhongtian Technology Co., Ltd., a leading submarine cable manufacturing company in China, announced on August 16 that it will invest US$80 million (about 574 million yuan) to build a high-end cable manufacturing base in Dammam, Saudi Arabia. This is the first major investment project of Chinese submarine cable companies in Saudi Arabia, marking a key step in the deep participation of Chinese manufacturing in the energy infrastructure of the Middle East.

It is reported that the newly established "ECO MARINER COMPANY" will focus on the localized production of submarine cables, OPGW optical fiber composite overhead ground wires and land cables, and at the same time support the construction of submarine cable operation and maintenance service centers. The project completed investment through Zhongtian Technology's Hong Kong subsidiary and Singapore company, achieving 100% control. The company said that this move aims to respond to Saudi Arabia's "Vision 2030" and promote the intelligent upgrading of the energy Internet in the Middle East.

Zhongtian Technology emphasized in the announcement that the Saudi base will build a three-in-one service capability of "localized production center, intelligent delivery network and professional operation and maintenance system". It is worth noting that this investment coincides with the company's start of building a new generation of cable laying ships at the beginning of the month, forming a complete industrial chain layout of "manufacturing + construction". Analysts pointed out that this will help Zhongtian Technology gain an advantage in the competition of major projects such as offshore wind power and cross-sea networking in the Middle East.

The chairman of the company said at the global partner conference held at the same time that the Saudi project is an important landing point in the "era of global layout 2.0" and will form synergies with the power and energy projects of Chinese companies in the Middle East. However, the announcement also reminds of risk factors such as overseas investment approval and cultural differences.

Industry data shows that the market demand for submarine cables in the Middle East will maintain an average annual growth rate of more than 15% in the next five years. The layout of Zhongtian Technology can not only avoid trade barriers, but also serve landmark projects such as Saudi Arabia's Red Sea wind power and the Persian Gulf cross-sea power grid, which is of exemplary significance in the "going out" strategy of Chinese enterprises. (This article is from the official website of Jiandao www.seetao.com it must not be reprinted without permission, otherwise it will be investigated, please indicate the reprint of Jiandao.com + original link) See the Middle East column editor/Gao Xue