Saudi Aramco has announced that it has signed a Memorandum of Understanding (MoU) with Hyundai Heavy Industries (HHI) and Dussur (the Saudi Arabian Industrial Investments Company) to jointly collaborate on engines and pumps business development in the Kingdom of Saudi Arabia.
The MoU seeks to form a joint venture (JV) to manufacture 2-stroke engines, 4-stroke engines, and marine pumps; including sales and aftersales services in the MENA region.
The manufacturing facility will be co-located with the maritime yard in Ras Al-Khair, at the King Salman International Complex for Maritime Industries and services, where it will develop synergies with several complementary ventures.
The new JV will manufacture 4-stroke engines under HHI’s HiMSEN brand licensing, serving as a regional production stronghold to support the growing demand for electricity in the MENA region as well as marine applications for very large and small vessels. The JV will also operate under a MAN-HHI sublicense for the manufacturing and servicing of 2-stroke engines.
The JV is expected to generate over 650 direct jobs, as well as indirect jobs through the development of the supply chain.
The parties are preparing to engage in the development of detailed documentation to reach a final investment decision (FID). It is expected that the facility will commence operation by the end of 2019.
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