Saudi Aramco (TADAWUL: 2222) announced Monday the expansion of its flagship program to increase local content and boost domestic supply chains.
The business has signed Memorandums of Understanding (MOU) with several companies, including Shell & AMG Recycling BV (AMG) from the Netherlands and Chinese firms Suzhou XDM, Shen Gong, Xinfoo and SUPCON.
Aramco said the collaborations pave the way for the launch of new businesses across multiple innovative growth sectors and reflect its commitment to increasing the company’s reliability and operational efficiency, as well as its commitment to further enhancing the Kingdom’s commercial ecosystem and increasing employment and development opportunities for Saudis.
The full list of MOUs can be seen below:
- POSCO – an agreement to collaborate on evaluating the feasibility of constructing an integrated steel plate manufacturing plant in Saudi Arabia.
- Suzhou XDM 3D Printing Company Ltd – an agreement to collaborate on industrial 3D printing technologies and development in Saudi Arabia.
- SHEN GONG New Materials (Guang Zhou) Co. Ltd – an agreement to focus on developing control systems technologies for LED lighting, energy management and intelligent control.
- XINFOO Sensor Technology Company Limited – an agreement to explore opportunities in chip manufacturing and related technologies.
- Shell & AMG Recycling B.V. – an agreement to explore collaboration to develop plans for a regional hub for the recycling of gasification ash and reclamation of spent catalyst, in addition to providing sustainable solutions.
- Zhejiang SUPCON Technology Co., Ltd – an agreement to explore potential joint investment opportunities in Saudi Arabia for the services and manufacturing value chain.
“Today’s announcement is a step change in Aramco’s pioneering In-Kingdom Total Value Add (IKTVA) program which was launched in 2015,” Amin H. Nasser, Aramco’s president and chief executive officer, said in a company statement.
“Despite the uncertainties surrounding the global economy, we have sustained our focus on our long-term goals to enable growth and development for a thriving ecosystem and a more diversified Saudi economy,” he added.
“These new partnerships will contribute to advancing innovation, sustainability and enhance the scale of reliability in our business ecosystem and, in addition, benefit companies operating in the Kingdom’s vast energy and chemicals sector,” Nasser went on to say.
“These partnerships will also have a strong focus on new technologies, by maximizing our investments in non-metallic materials and the circular carbon economy, as well as the development of talented Saudis in communities where we operate,” Nasser continued.
Ahmad Al-Saadi, Aramco’s senior vice president of technical services, said, “Aramco has a long history of supporting the local business ecosystem”.
“Our IKTVA program is a manifestation of our commitment to this and the resulting investments, either directly by Aramco or indirectly by suppliers, have promoted localization, contributed to Aramco’s supply chain resilience and enhanced Saudi Arabia’s economic growth,” he added.
“Our planned partnerships will continue this journey and advance the Kingdom’s economic progress. We intend to act as an enabler, supporting the growth of national champions. Today we are expanding our flagship program and expect more partnerships in the future,” he continued.
The IKTVA program marks its fifth anniversary on December 1. It is designed to drive domestic value creation and maximize long-term economic growth and diversification to support a rapidly changing economic environment, Aramco notes on its website.
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