Leishen Energy Holding Co., Ltd. (NASDAQ: LSE) announced that its Saudi Arabia subsidiary, LSE Energy International, is moving forward with a new manufacturing base at the Port of Jubail. The planned plant will produce reciprocating compressors, expanders, flexible composite pipes, Christmas tree equipment, wellhead control panels, inverters, energy storage systems, and generators, positioning the company to supply a broad range of upstream and midstream equipment to the Middle East.
The expansion comes in the wake of recent attacks on Saudi energy infrastructure that disrupted the East‑West pipeline and key oil fields. Leishen Energy’s leadership highlighted the urgency of restoring critical assets and noted that the new facility will help meet the reconstruction needs of the region while aligning with Saudi Vision 2030’s goal of diversifying the economy and boosting foreign investment.
Financially, Leishen Energy reported a 30% decline in revenue and a drop in gross profit for FY 2025, reflecting headwinds in its core Chinese market. The company has strengthened its balance sheet through an IPO, reduced leverage, and maintained a strong cash position, giving it the capacity to fund the Saudi investment and diversify its revenue streams.
The company is finalizing an industrial land arrangement, completing a feasibility study, and navigating local regulatory approvals. It will operate as a local Saudi entity and will comply with Saudi localization requirements, underscoring its commitment to the local economy and supply chain stability.
The GCC market for upstream equipment is expanding as the region accelerates both traditional oil‑gas projects and renewable energy initiatives. By establishing a production base in Jubail, Leishen Energy aims to capture a growing share of demand for compressors, expanders, and composite piping, while also positioning itself to supply inverters and energy storage solutions for the region’s evolving energy mix.
"We are deeply aware that many oil and gas assets across the Middle East have been severely damaged during the recent conflicts," said Chairman Hongqi Li. "Leishen Energy is committed to playing a constructive role in the region’s post‑war rehabilitation and reconstruction." Li added that the company plans to stay, rebuild, and grow alongside its partners in the Middle East.
"Our Saudi production facility is strategically planned to be positioned to supply high‑quality, reliable equipment to help restore energy infrastructure, stabilize supply chains, and support economic recovery across the region," Li said.
The announcement signals a significant strategic pivot for Leishen Energy, moving beyond its China‑centric operations to tap into a high‑growth, geopolitically sensitive market while addressing immediate reconstruction needs and long‑term energy transition trends.
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