Saudi Aramco has signed a Memorandum of Understanding with GE and Cividale SpA of Italy to build a forging and casting manufacturing facility that will serve the region’s maritime and energy industries.
Marking a joint investment of over US$400 million, the new facility is to be located in Ras Al-Khair under the Royal Commission of Jubail and Yanbu industrial area. It is expected to be operational in 2020.
The MoU follows a preliminary partnership between Saudi Aramco and Cividale, a leading 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 between the three entities.
The Forging & Casting Manufacturing Facility will 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 & supplies that go into the production line.
Abdallah I. Al-Saadan, Senior Vice President, Finance, Strategy & 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. Together with our partners, we will actively engage Saudi SMEs to support the plant’s operations, and train & 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 specialised equipment and services.”
Edited from press release by Angharad Lock
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