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Japan’s Kobe Steel expands to Saudi Arabia with new service center

Thursday, 21 August 2025 15:51:06 (GMT+3)   |   Istanbul

Japan-based steelmaker Kobe Steel, Ltd. has announced the establishment of Kobelco Machinery Solution Arabia (KMSA) in Saudi Arabia, one of the world’s most important markets for non-standard compressors and plastic mixing and pelletizing systems. This move aims to strengthen after-sales services, improve on-site operational support, and bring the company closer to customers across the Middle East.

Expanding market footprint in the Middle East

Kobe Steel has long recognized the strategic importance of the Middle East. In 2012, the company launched Kobelco Machinery Middle East (KMME) in the UAE to serve as a key service hub, providing customer support across the Middle East, India, and Africa.

Saudi Arabia’s vision 2030: a key driver

Saudi Arabia’s government is pushing forward Vision 2030, which emphasizes domestic industrial production and local supplier preference. Major companies in the Kingdom are increasingly awarding contracts to service providers based within Saudi Arabia, especially for maintenance and technical personnel dispatch.

Kobe Steel’s decision to establish KMSA directly supports this initiative by ensuring compliance with localization requirements while boosting competitiveness in the region.