Honeywell, Saudi Aramco ink deal to localise supply chain
Under the terms of the agreement, Honeywell will undertake commercial efforts in support of Saudi Aramco's IKTVA Program
Honeywell and Saudi Aramco have signed a memorandum of understanding (MoU) in support of the latter’s In-Kingdom Total Value Add (IKTVA) Program.
Under the terms of the agreement, Honeywell will undertake commercial efforts to assist the oil giant in achieving the goals of the initiative, which was launched in 2015 with the aim of developing a competitive and reliable local supply chain.
Saudi Aramco and Honeywell will jointly explore the potential for the development of new engineering capabilities and systems within several of Saudi Arabia’s industrial segments and, in doing so, support the programme’s objectives of increased investment, economic diversification, job creation, and workforce development in the kingdom.
In addition to enabling a sustainable energy sector in Saudi Arabia, the IKTVA Program aims to establish a level playing field for suppliers through transparent processes, creation of supplier-focussed partnerships, and regular quality assessments.
Amin H Nasser, president and chief executive officer of Saudi Aramco, commented: “Since its launch in 2015, IKTVA has represented a step change in our commitment to local content development that is now required across our domestic and international supply chain.
“By recognising the value that our partners like Honeywell offer to our long-term growth and economic diversification plans, we are able to create significant opportunities for companies willing to partner with Saudi Aramco on a long-term, sustainable basis. Our professional relationship with Honeywell spans more than six decades, and serves as an example of such a partnership – one based on trust, common goals, and shared commitment to our industries and the future of the kingdom.”
Meanwhile, Darius Adamczyk, president and CEO of Honeywell, credited Saudi Aramco for his firm's continuous success in Saudi Arabia. He said: “From delivering the latest technologies to Saudi Arabia’s industries, to providing distinct training and professional development opportunities for the local workforce, our ambitions are closely aligned with the long-term development plans of the IKTVA Program and Saudi Vision 2030.
"This agreement offers a new platform to further enhance this partnership and expand Honeywell’s presence in the kingdom," Adamczyk added.
In addition to Saudi Aramco, Honeywell has partnered with King Fahd University for Petroleum and Minerals (KFUPM). The partnership covers a petrochemicals production project, as well as the Honeywell UOP University and Global TECPro initiatives, which are aimed at helping transform Saudi Arabia into a knowledge-based economy.