Saudi Aramco, Dussur and Hyundai set up engine JV
Saudi Aramco will set up an engine and pump business jointly with Saudi Arabian Industrial Investments Company (Dussur) and Hyundai Heavy Industries (HHI)
Saudi Aramco has revealed plans to set up an engine and pump business in collaboration with Saudi Arabian Industrial Investments Company (Dussur) and Hyundai Heavy Industries (HHI).
Accordingly, the Saudi Aramco JV will set up a factory in Ras Al Khair Economic City in the kingdom’s Eastern Province which will manufacture two-and four-stroke engines, and marine pumps for vessels and power plants, according to a post on the company’s website.
The new company will also provide sales and after sales services to the customers across the Middle East and North Africa (Mena) region.
“The new manufacturing facility will be co-located with the maritime yard at the King Salman International Complex for maritime industries and services,” stated Zaid Murshed, vice president for new business development at Saudi Aramco.
Rasheed Al Shubaili, the chief executive of Dussur and Kidon Chang, the chief executive of engine business at HHI inked the agreements on behalf of their respective companies.
The new JV will manufacture 4-stroke engines under HHI’s brand licensing, serving as a regional production centre to support the growing demand for electricity in the Mena region as well as marine applications for very large and small vessels, Murshed added.
According to Al Shubaili, Ras Al Khair Economic City was chosen as the factory location venue because of the lower electrical and other costs of production due to the advantaged supply of machine-finished steel and iron components for engines and pumps from the casting and forging facilities availability in the vicinity.
The engine and pump JV is expected to generate over 650 direct jobs, as well as indirect jobs through the development of the supply chain. The facility is likely to start commercial operation by the end of 2019, Murshed added.