DHAHRAN: Saudi Aramco has signed a memorandum of understanding (MoU) with GE and Cividale SpA of Italy to build the Middle East and North Africa’s first-of-its-kind high-end forging and casting manufacturing facility that will serve the region’s maritime and energy industries.
Marking a joint investment of over $400 million (SR1.5 billion), the new facility, to be located in Ras Al-Khair under the Royal Commission of Jubail and Yanbu industrial area, aims to establish a high-value supply chain that boosts exports and economic competitiveness, according to an official press release.
Set to be operational in 2020, the plant will create 2,000 quality jobs in the Kingdom and catalyze the growth of Saudi small and medium enterprises (SMEs).
The MoU follows a preliminary partnership between Saudi Aramco and Cividale, a major European producer in the steel and cast iron sector, to conduct feasibility studies for forging and casting manufacturing services in the Kingdom.
GE has come on board to extend its expertise and investment in developing the world-class manufacturing plant through a joint venture among the three entities.
The Forging & Casting Manufacturing Facility complements plans by Saudi Aramco to develop several industrial projects in the Kingdom, including a maritime project focused on building, maintenance, repair and overhaul (MRO) of offshore platforms, jack-ups, offshore service vessels and commercial tankers.
Saudi Aramco is also working with its partners to develop an onshore rig manufacturing facility for providing new build and MRO services to onshore rigs and systems; an engine manufacturing project for the manufacturing, maintenance and repair of diesel engines, manufacturing and repair of marine pumps; and an Energy Industrial City to accelerate manufacturing industries in the oil and gas sector.
The Forging & Casting Manufacturing Facility will serve all these projects in addition to providing the best-in-class services and technologies to downstream and other industries across the region and global markets. It will also support the ongoing emphasis of the government, under Saudi Vision 2030, to develop the mining sector of the Kingdom by creating a domestic source-market for various raw materials and supplies that go into the production line.
Abdallah I. Al-Saadan, senior vice president, finance, strategy and development, Saudi Aramco, said: “The MoU reflects our ambition to create a robust supply chain that builds positive synergies in the oil and gas manufacturing sector. This builds on our deep commitment to support the goals of Saudi Vision 2030 to promote economic and industrial diversification in the Kingdom and boost localized manufacturing.”
Rami Qasem, president & CEO, GE Oil & Gas, Middle East, North Africa & Turkey, said: “For the Forging & Casting Manufacturing Facility, we will leverage our already strong expertise in Made in Saudi’ manufacturing.”
He said: “Together with our partners, we will actively engage Saudi SMEs to support the plant’s operations, and train and hire Saudi professionals, adding further value to the economy. By building a domestic forging and casting production unit, Saudi and regional customers can achieve greater operational efficiencies in product procurement, repair and service support.”
Antonio Valduga, president of Cividale, added: “The feasibility assessment study underlines the strong potential for a world-class manufacturing facility for forging and casting services in the Kingdom. Developing a full-fledged facility through the joint partnership will position Saudi Arabia as a technology and services hub for specialized equipment and services.”
The collaboration is a strong example of the public-private partnerships that the government fosters under Vision 2030 to develop local manufacturing capabilities that add significant value to the economy.
Saudi Aramco is a world leader in integrated energy and chemicals.
GE is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive.
Cividale Group is located in a strategic position near to the most important European markets.
Its shops are all laying in the North-East of Italy.
Saudi Aramco signs deal for Ras Al-Khair facility
Saudi Aramco signs deal for Ras Al-Khair facility
Saudi-Japanese Ministerial Investment Forum witnesses the signing of 12 MoUs
RIYADH: The Saudi-Japanese Ministerial Investment Forum saw the signing of 12 memorandums of understanding across a wide range of sectors, including space, finance and agriculture.
The event aimed to enhance bilateral investment and trade cooperation, facilitate access to new investment opportunities, and review joint initiatives in key industries, including energy, machinery, and equipment, according to the Saudi Press Agency.
This cooperation will further strengthen the investment partnership between Saudi Arabia and Japan, particularly within the framework of the Saudi-Japanese Vision 2030, which aims to deepen economic collaboration and foster long-term strategic ties between the two nations.
The Kingdom has long been a key partner for Japan from an energy security perspective, serving as a stable and reliable supplier of crude oil for many years.
This relationship aligns with Japan’s strong commitment to supporting Saudi Arabia through the sharing of expertise and the transfer of advanced technologies that contribute to sustainable economic development.
The forum also explored ways to strengthen efforts to develop economic ties between the two countries and enable the private sector to capitalize on investment opportunities.
The forum was held under the umbrella of “Invest in Saudi Arabia” in the presence of Prince Faisal bin Bandar bin Sultan, president of the Saudi Esports Federation, the Minister of Investment Khalid bin Abdulaziz Al-Falih, and the Minister of Communications and Information Technology Abdullah bin Amer Al-Swaha.
Among the attendees from Japan was the country’s Minister of Economy, Trade and Industry Ryosei Akazawa along with the participation of a number of government officials, as well as representatives from major Saudi and Japanese companies.
In an interview with Al-Ekhbariya, Al-Falih said: “Japan is our third largest trading partner and one of the largest investors in the Kingdom, with investments exceeding SR25 billion ($6.67 billion), if I recall correctly.
“However, our ambition is to see this mutual trade and investment, particularly Japanese investments in the Kingdom, grow.”
He added: “Specifically, we are looking to focus on promising sectors targeted by the new Japanese Prime Minister, sectors that align perfectly with the Kingdom’s Vision 2030: the technology sector, the gaming sector, electronics, and digital content; the green energy sector, and renewable energy, which the Japanese need.”
The minister went on to note that the Kingdom was the first country to export carbon-free ammonia products to Japan.
In his speech during the forum, Al-Falih stated that Saudi Arabia is preparing to begin exporting green hydrogen to Japan soon, Al-Eqtisadiah reported.
