Energy Recovery has signed a lease for its first manufacturing facility in Saudi Arabia, marking a milestone in the company’s regional expansion and reinforcing the Kingdom’s position as the world’s leading desalination market.
Located near Dammam Second Industrial City, the 3,750m² facility is expected to begin operations in 2027. It will manufacture key components of Energy Recovery’s PX Pressure Exchanger technology, including machining, assembly and testing, serving customers across Saudi Arabia and the wider MENA region.
The move brings production closer to one of the world’s fastest-growing desalination markets, where rising demand for reliable water supplies is driving continued investment in seawater desalination and water infrastructure. By establishing an in-country manufacturing presence, Energy Recovery aims to strengthen supply chain resilience, improve customer support and contribute to Saudi Arabia’s industrial localisation ambitions under Vision 2030.
“Geographic diversity in our manufacturing footprint has been a linchpin of our operating strategy, and this facility is a concrete step in that direction,” said Alex Buehler, interim president and CEO of Energy Recovery. “A Saudi Arabian manufacturing presence complements our existing operations in California and positions us closer to the customers and markets at the centre of global desalination.”
The company will operate through Energy Recovery company, its wholly owned Saudi Arabian entity. Beyond manufacturing, the facility is expected to create skilled local jobs and support the transfer of advanced desalination expertise, aligning with the Kingdom’s efforts to develop domestic industrial capabilities.
Saudi Water Authority welcomed the investment, describing it as an important step towards strengthening the country’s water technology ecosystem.
“Energy Recovery’s decision to establish manufacturing operations in Dammam reflects the Kingdom’s success in attracting high-value industrial investments that support technology localisation, develop national capabilities, enable Saudi talent, and build a competitive and resilient domestic supply chain,” said Eng. Mohammed Alshaikh, vice-president of strategic partnerships and local content at the Saudi Water Authority.
Energy Recovery has supplied the desalination industry for more than three decades. Its energy recovery devices currently support the production of approximately 43.6 million m³ of desalinated water every day while reducing energy consumption by up to 60% in seawater reverse osmosis (SWRO) plants. The company estimates its technology saves desalination operators around US$7.2 bn in annual energy costs.