Saudi Aramco has recently signed a Memorandum of Understanding (MoU) with GE (NYSE: GE) and Cividale SpA of Italy to build the Middle East and North Africa’s first-of-its-kind high-end forging & casting manufacturing facility that will serve the region’s maritime and energy industries.
Marking a joint investment of over USD 400M (SAR1.5 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. 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 leading European producer in the steel and cast iron sector, to conduct feasibility studies for forging and casting manufacturing services in the Kingdom. 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.”