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Aramco, GE, and Cividale SpA Agree to Build $400 Million Facility - ASHARQ AL-AWSAT English Archive
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Riyadh-Saudi Arabia welcomed all international corporations planning to invest in the country within a competitive environment. This comes as Saudi Aramco signed a memorandum of understanding with General Electric (GE) and Italian Cividale SpA to build a forge and caste facility in Ras al-Kheir area.

During his speech at the GE Global Supplier Forum, Saudi Minister of Trade and Investment Majid al-Qasabi said: “This global event has the ability to build a global supply chain with Saudi Arabia as its strategic center.”

He added that Saudi Arabia offers a competitive investment environment which is getting stronger under Saudi Vision 2030.

The forum held under the patronage of Second Deputy Premier and Defense Minister HRH Deputy Crown Prince Mohammed bin Salman, attracted over 300 business leaders from over 20 countries.

Minister al-Qasabi explained that Saudi Arabia is working on setting the pillars for international businesses to strengthen their local operations. He added that GE Global Supplier Forum is a platform to introduce global businesses to transformation strategies that are adopted in Saudi Arabia.

President of Military Industries Corporation (MIC) Mohammed al-Mady said that Saudi Arabia aims at investing in military industries such as armored vehicles and ammunition.

Similarly, Director General of Saudi Industrial Property Authority (MODON) Saleh al-Rashid believed that Saudi Vision 2030 sets a clear roadmap for various economic and industrial products in the country.

Al-Rashid explained that MODON plays an important role in boosting the industrial transformation of Saudi Arabia by focusing on creating industrial cities that shall create job opportunities for Saudis, strengthening the value supply chain and diversifying industrial sectors.

The memorandum of understanding between Saudi Aramco, GE, and Cividale SpA of Italy consists of building a new facility that will serve the Middle East and North Africa’s maritime and energy industries.

The joint investment is set to cost over 400 million dollars in Ras al-Kheir within the industrial area of Royal Commission of Jubail and Yanbu. It is expected for the facility to start operating in 2020 creating around 2,000 jobs for Saudis.

Senior Vice President, Finance, Strategy & Development of Saudi Aramco, Abdulallah al-Saadan said that this memorandum reflects the ambition to create a supply chain to support Saudi Vision 2030 goals to promote economic and industrial diversification and boost local manufacturing in the country.

Whereas President & CEO of GE Oil & Gas, Middle East, North Africa & Turkey Rami Qasem said that the aim of the investment is to benefit from Saudi expertise in manufacturing to encourage small and medium corporations on supporting the facility’s operations.

Qasem added that the new production unit will enhance operational efficiencies in product procurement, repair, and support.

President of Cividale SpA, Antonio Valduga explained that the feasibility assessment study shows that the facility for forging and casting services has a strong potential, positioning Saudi Arabia as a technology and services center for specialized equipment and services.

Cividale SpA is a leading European producer in steel and cast iron sector. It will conduct feasibility studies for forging and casting manufacturing services in Saudi Arabia. Saudi Aramco is also working with its partners to develop a facility that produces onshore drilling equipment to provide and build new services, maintenance and repair of diesel engines, manufacturing and repair of marine pump, among many other projects.