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

• Text

3

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

4

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.

120

30

1615

120

14

20 20

130

2013

20 20

180

130

20

2017

140

20

160140

18

160

30170

2023

140

19

150

30

150

21

30

22

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

5

The material, data, charts and pieces of information contained in this document (“Information’) is for

general information purposes only and should not be construed as an investment or commercial advice

or as a recommendation whatsoever. The user of the Information (“User”) is responsible for

independently verifying the Information and shall make his own determination as to how suitable the

Information is for his own usage and intent. User should not rely upon the Information as a basis for

making any business or investment decisions. Whilst Qatar Petroleum endeavours to provide and keep

the Information up to date and correct, Qatar Petroleum makes no representations or warranty of any

kind, express or implied about the content, completeness, accuracy, quality, reliability or suitability with

respect to the Information for any purpose. Qatar Petroleum expressly disclaims liability for errors and/or

omissions in the Information contained in this document and shall in no event be liable for damages

resulting from the use or reliance of User upon the Information. Any reliance the User of the Information

places on such Information is strictly at User’s own risk.

LIGHT EQUIPMENT, BUSINESS SERVICES AND OTHERS INVESTMENT OPPORTUNITY: MANUFACTURING OF MECHANICAL SEALS

Email: tawteen@qp.com.qa | Website: https://tawteen.com.qa