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
First EU–Saudi roundtable on critical raw materials reflects shared policy commitment
RIYADH: The EU–Saudi Arabia Business and Investment Dialogue on Advancing Critical Raw Materials Value Chains, held in Riyadh as part of the Future Minerals Forum, brought together senior policymakers, industry leaders, and investors to advance strategic cooperation across critical raw materials value chains.
Organized under a Team Europe approach by the EU–GCC Cooperation on Green Transition Project, in coordination with the EU Delegation to Saudi Arabia, the European Chamber of Commerce in the Kingdom and in close cooperation with FMF, the dialogue provided a high-level platform to explore European actions under the EU Critical Raw Materials Act and ResourceEU alongside the Kingdom’s aspirations for minerals, industrial, and investment priorities.
This is in line with Saudi Vision 2030 and broader regional ambitions across the GCC, MENA, and Africa.
ResourceEU is the EU’s new strategic action plan, launched in late 2025, to secure a reliable supply of critical raw materials like lithium, rare earths, and cobalt, reducing dependency on single suppliers, such as China, by boosting domestic extraction, processing, recycling, stockpiling, and strategic partnerships with resource-rich nations.
The first ever EU–Saudi roundtable on critical raw materials was opened by the bloc’s Ambassador to the Kingdom, Christophe Farnaud, together with Saudi Deputy Minister for Mining Development Turki Al-Babtain, turning policy alignment into concrete cooperation.
Farnaud underlined the central role of international cooperation in the implementation of the EU’s critical raw materials policy framework.
“As the European Union advances the implementation of its Critical Raw Materials policy, international cooperation is indispensable to building secure, diversified, and sustainable value chains. Saudi Arabia is a key partner in this effort. This dialogue reflects our shared commitment to translate policy alignment into concrete business and investment cooperation that supports the green and digital transitions,” said the ambassador.
Discussions focused on strengthening resilient, diversified, and responsible CRM supply chains that are essential to the green and digital transitions.
Participants explored concrete opportunities for EU–Saudi cooperation across the full value chain, including exploration, mining, and processing and refining, as well as recycling, downstream manufacturing, and the mobilization of private investment and sustainable finance, underpinned by high environmental, social, and governance standards.
From the Saudi side, the dialogue was framed as a key contribution to the Kingdom’s industrial transformation and long-term economic diversification agenda under Vision 2030, with a strong focus on responsible resource development and global market integration.
“Developing globally competitive mineral hubs and sustainable value chains is a central pillar of Saudi Vision 2030 and the Kingdom’s industrial transformation. Our engagement with the European Union through this dialogue to strengthen upstream and downstream integration, attract high-quality investment, and advance responsible mining and processing. Enhanced cooperation with the EU, capitalizing on the demand dynamics of the EU Critical Raw Materials Act, will be key to delivering long-term value for both sides,” said Al-Babtain.
Valere Moutarlier, deputy director-general for European industry decarbonization, and directorate-general for the internal market, industry, entrepreneurship and SMEs at European Commission, said the EU Critical Raw Materials Act and ResourceEU provided a clear framework to strengthen Europe’s resilience while deepening its cooperation with international partners.
“Cooperation with Saudi Arabia is essential to advancing secure, sustainable, and diversified critical raw materials value chains. Dialogues such as this play a key role in translating policy ambitions into concrete industrial and investment cooperation,” she added.
