Saudi Aramco has signed an MoU with GE and Cividale SpA to build a US$400mn forging and casting manufacturing facility that will serve the region’s maritime and energy industries
The new facility will provide services and technologies to downstream and other industries across the global markets too. According to the statement released by both companies, the plant will be operational in 2020 and is expected to create around 2,000 jobs in the country and catalyse the growth of Saudi Arabia’s small and medium enterprises.
The MoU follows a preliminary partnership between Saudi Aramco and Cividale SpA to conduct feasibility studies for forging and casting manufacturing services in the Kingdom. GE has joined the venture and is expected to extend its expertise and investment in developing the manufacturing plant.
The proposed plant will be located in Ras Al-Khair under the Royal Commission of Jubail and Yanbu industrial area.
Saudi Aramco senior vice-president, finance, strategy and development, 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 localized manufacturing.”
The collaboration is projected as a strong example of the public-private partnerships that the Suadi government fosters under Saudi Vision 2030 to develop local manufacturing capabilities that add significant value to the economy.
