Saudi Arabia: Aramco partners with GE and Italy's Cividale for $400M manufacturing plant

Published June 2nd, 2016 - 07:00 GMT
Slated to be operational in 2020, the plant will create 2,000 jobs in the kingdom. (Shutterstock)
Slated to be operational in 2020, the plant will create 2,000 jobs in the kingdom. (Shutterstock)

Saudi Aramco has signed a memorandum of understanding with GE and Italian firm Cividale SpA to build a $400m forging and casting manufacturing facility in the kingdom.

The new facility, to be located in Ras Al-Khair under the Royal Commission of Jubail and Yanbu industrial area, will serve the region’s maritime and energy industries.

It aims to establish a supply chain that boosts Saudi Arabia’s exports and economic competitiveness, a statement said.

Slated to be operational in 2020, the plant will create 2,000 jobs in the kingdom.

The MoU follows a preliminary partnership between Aramco and Cividale to conduct feasibility studies for forging and casting manufacturing services in Saudi.

GE will extend its expertise and investment in developing the manufacturing plant through a joint venture between the three entities.

The forging and casting manufacturing facility is part of plans by Aramco to develop several industrial projects in the kingdom including a maritime project focused on building, maintenance, repair and overhaul of offshore platforms, jack-ups, offshore service vessels and commercial tankers.

The state-owned oil giant is also working with its partners to develop an onshore rig manufacturing facility; an engine manufacturing project; and an Energy Industrial City.

The new facility will also support Saudi’s new Vision 2030 of developing the country’s mining sector by creating a domestic source-market for raw materials and supplies.

Senior vice president of Finance, Strategy and Development at Aramco Abdallah I. Al-Saadan 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 localised manufacturing.”

By Aarti Nagraj

 

 

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