Chinese firms Suzhou XDM, Shen Gong, Xinfoo and SUPCON are among the six companies signed up by Saudi Aramco to launch new businesses across innovative growth sectors in the Kingdom, the world's biggest oil company said on Monday.
The other two companies were Netherland's Shell & AMG Recycling (AMG) and South Korea's Posco, according to Aramco's press statement.
The agreements cover partnerships and the establishing of companies through an Industrial Investment Program (IIP) in the growth areas of industrial 3D printing; digital equipment manufacturing; energy management and control; steel plate manufacturing; catalyst manufacturing and recycling, and advanced chip and smart sensor manufacturing, Aramco said in a press statement.
It said the agreements form part of Aramco's plans to expands its localisation programme to enhance the Kingdom's commercial ecosystem and increase employment and development opportunities for talented Saudis.
Under the MoU, the Saudi national oil company will partner with:
- Suzhou XDM 3D Printing Co. to develop industrial 3D printing technologies in Saudi Arabia.
- Shen Gong New Materials (Guang Zhou) Co. to develop control systems technologies for LED lighting, energy management and intelligent control.
- Xinfoo Sensor Technology Co. to explore opportunities in chip manufacturing and related technologies.
- Zhejiang Supcon Technology Co. to explore potential joint investment opportunities in Saudi for the services and manufacturing value chain
The MoU with Shell & AMG Recycling involves development of plans for a state-of-the-art regional hub for the recycling of gasification ash and reclamation of spent catalyst, and with Posco, the pact involves evaluation of the feasibility of constructing an integrated steel plate manufacturing plant in Saudi Arabia.
Amin H Nasser, Aramco's President & Chief Executive Officer, said the announcement is a step change in Aramco's pioneering IKTVA programme which was launched in 2015.
"These partnerships will also have a strong focus on new technologies, by maximising our investments in non-metallic materials and the circular carbon economy, as well as the development of talented Saudis in communities where we operate."
Ahmad Al-Saadi, Aramco's Senior Vice President of Technical Service added that the investments resulting from the IKTVA programme so far have promoted localisation, contributed to Aramco's supply chain resilience and enhanced Saudi Arabia's economic growth.
"Today we are expanding our flagship programme, and expect more partnerships in the future," he said.
Since IKTVA's launch, Aramco's local content index has increased from 35 percent at the end of 2015 to 56 percent.
(Writing by Syed Ameen Kader; Editing by Anoop Menon)
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