Saudi Aramco has signed a memorandum of understanding (MoU) with GE and Cividale SpA of Italy to build the SAR1.5bn ($400M) forging and casting manufacturing facility in Saudi Arabia.
The facility will be located in Ras Al-Khair under the Royal Commission of Jubail and Yanbu industrial area.
It will complement Saudi Aramco’s plans to develop several industrial projects in the country including a maritime project focused on building, maintenance, repair and overhaul (MRO) of offshore platforms, jack-ups, offshore service vessels and commercial tankers.The facility is scheduled to be operational in 2020 and create 2,000 jobs in the region. Cividale is a producer in the steel and cast iron industry.
Saudi Aramco’s senior vice president of finance, strategy and development Abdallah 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 plant is scheduled to be operational in 2020 and create 2,000 jobs in the region.
* For more information on the Saudi Arabia construction market, visit the Construction Intelligence Center Report Store.