Saudi Arabia: Dussur and GE sign $270m joint venture agreement
The joint venture is expected to create the capacity to supply the majority of Saudi Arabia’s annual demand for gas turbines
Saudi Arabia-headquartered industrial investments and development company, Dussur, has announced signing a joint venture (JV) agreement with GE worth more than $270m (SAR1bn).
The agreement was signed in the presence of HRH King Salman bin Abdulaziz Al Saud and US President Donald Trump, and was part of an earlier announcement about GE signing $15bn worth of deals with Saudi Arabian partners.
In a statement, Dussor said that the agreement represents significant progress towards achieving the Saudi Vision 2030 for the country, as it will help localise gas turbine manufacturing and establish a global industrial supply chain for the energy sector.
The agreement follows a strategic memorandum of understanding (MoU) signed between Dussur and GE last year, which is expected to result in nearly $1.02bn (SAR3.75bn) worth of investments from the two companies, to be spread across multiple sectors in 2017.
The joint venture will create the capacity to supply the majority of Saudi Arabia’s annual demand for gas turbines.
Dussur further noted that the investment will create added economic value, contribute to the national economy, and boost the local supply chain to benefit small and medium-sized enterprises (SMEs). Under the terms of the agreement, GE and Dussur will strengthen ‘Made in Saudi’ capabilities by expanding manufacturing processes, specifically around gas turbine component technology.