The Saudi Arabian Oil Company (“Aramco” or “the Company”) in collaboration with Indian conglomerate Larsen & Toubro (L&T) is developing manufacturing capabilities in the Kingdom of Saudi Arabia.
The companies have signed a Memorandum of Understanding outlining collaboration on L&T's efforts to establish the region's first Heavy Wall Pressure Vessels facility at Saudi Arabia's strategically located Jubail Industrial City.
The MoU is in line with the Aramco Namaat program, launched in September, which aims to tap into the vast opportunities available in Saudi Arabia to create value, as well as drive economic expansion and diversification.
Ahmed Sa'adi, Aramco's Senior Vice President of Technical Services, said: “This manufacturing facility, once completed, will provide a large number of skilled job opportunities for Saudi youth, localize the “know how” of heavy wall vessels in the Kingdom, and deploy the latest manufacturing technologies to serve the Kingdom and MENA region. We expect this facility to help Aramco and others in the Kingdom to increase localization and optimize capital cost.”
Mr. S. N. Subrahmanyan, L&T's CEO, said: “We believe this is another significant milestone for L&T in the Kingdom and a strong testimony to our commitment to the development of the region. We wish to express our gratitude to Saudi Aramco for their guidance and support in the Kingdom.”
L&T is due to start construction of the new facility imminently, with production expected to commence by Q3 2022. Spread over an area of 120,000 square meters, the facility aims to produce critical equipment for several industries, including the power and oil and gas sectors.