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 high-end forging & casting manufacturing facility that will serve the region’s maritime and energy industries.
Marking a joint investment of over $400mn (SAR 1.5bn), 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. 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.
Saudi Aramco plans 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. The company is also working with its partners to develop an onshore rig manufacturing facility.