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Oil major Saudi Aramco and global contract logistics provider DHL Supply Chain have signed a shareholders’ agreement for a new procurement and logistics hub in Saudi Arabia to enhance supply chain efficiency and sustainability.
The joint venture aims to be operational in 2025 and will provide end-to-end integrated procurement and supply chain services for companies across the industrial, energy, chemical and petrochemical sectors.
The new hub will initially focus on the Kingdom, with plans to expand across the MENA region, Aramco said in a statement.
The joint venture intends to achieve industry best practices in procurement and supply chain management, as well as the deployment of more sustainable supply chain, transport and warehousing solutions.
Amin H. Nasser, Aramco President & CEO, said: “By combining the exceptional energy, chemicals and industrial supply chain ecosystem of Aramco with the world-class shipping and logistics expertise of DHL, we aim to enable the procurement and logistics hub joint venture to serve as a one-stop hub for customers’ supply chain needs.”
Oscar de Bok, DHL Supply Chain CEO, added the joint venture is expected to allow businesses to reduce costs, maximise efficiency and harness digitalisation.
The new venture is subject to regulatory approvals and other customary closing conditions, the statement noted.
(Writing by D Madhura; Editing by Anoop Menon)
