Dammam- Saudi Aramco, Dussur and Hyundai said they had signed a memorandum of understanding to make engines and pumps in the kingdom.
In a joint statement, the three companies said the MoU stipulates that the mentioned parties cooperate in establishing a joint project to cover fields that include manufacturing engines and pumps.
The manufacturing facility will be located at the King Salman International Complex for Maritime Industries and Services, and is expected to contribute in reinforcing cooperation with other initiatives in Ras Al-Khair.
The joint venture will manufacture 4-stroke engines under HiMSEN brand licensing, serving as a regional production stronghold to support the growing demand for electricity in the MENA region as well as marine applications.
The three parties are targeting lower production costs by making use of machine-finished steel and iron components for engines and pumps from the casting and forging facility joint venture in Ras Al-Khair, and fixed and variable cost synergies related to the integration of two- and four-stroke engines in one shop, competitive advantaged related to the transportation of such engines from other international sources, increasing demand of 4 stroke engines either as complementary or backup power generation systems to support the growing demand for renewable power generation and remotely located new power plants, and the secured demand for engines and pumps in marine applications coming from the joint venture, in addition to a number of other internal advantages related to the contribution of each partner to the deal.
This project is expected to create over 650 jobs, in addition to other job opportunities in fields of engines and maritime exporting.
The companies hope to start operations at the new facility by the end of 2019. They will participate in preparing required studies to reach a final decision on investment in this project.