Saudi Aramco signed two agreements with the Royal Commission for Jubail and Yanbu (RCJY) to allocate industrial locations for Saudi Aramco to set up two industrial projects at Ras Al-Khair Industrial City.
The agreements were signed in the presence of Dr. Moslih bin Hamid Al-Otaibi, President of RCJY at their headquarters in Riyadh. Signing on behalf of Saudi Aramco was Mr. Fathi Al-Saleem, Manager of the Maritime Yard Department, while RCJY was represented by Eng. Ali Alshaghithri, General Manager of Strategic Planning & Investment Development.
Under the agreements, RCJY will allocate two industrial locations for Saudi Aramco. The first one will be utilized by Saudi Aramco to set up a manufacturing facility for onshore drilling rigs and related equipment on an area of 500,000 square meters. The second location will be used to develop a casting and forging facility over an area of 300,000 square meters. The new casting and forging facility will serve the maritime industry and the manufacturing of equipment related to the oil and gas supply chain.
Following the signing ceremony, Mr. Fathi Al-Saleem stated: "These projects will support the growth and localization of the supply chain related to the energy sector and help enhance the speed of supply and reduce associated costs for Saudi Aramco.” He added, “The projects are in line with the objective of our In-Kingdom Total Value Add (IKTVA) program, which is to maximize local content in manufactured goods and services in Saudi Arabia, up to 70% by the year 2021.”
Engineer Ali Alshaghithri emphasized the role of RCJY in providing the proper and conducive environment to stimulate industrial growth in the Kingdom, paving way for the Kingdom to strategically position itself particularly in the mining industry, to become a global competitor in this field.
He stated: “The most important strategic objective of the industrial city of Ras Al-Khair is the development of the mining sector in line with the Kingdom's strategic direction to diversify the sources of the national income, as well as seizing advantages of the integration between industries in Ras Al-Khair and petrochemical industries in Jubail Industrial City, creating a dynamic synergy involving a variety of manufacturing-based industries. This integration will also create a significant number of job opportunities for young Saudis.”
Today’s agreements represents an important element of Saudi Aramco's ongoing commitment to establishing a world-class supply chain and services ecosystem in Saudi Arabia. This is a strategic objective and cornerstone of the In-Kingdom Total Value Add (IKTVA) Program, launched by Saudi Aramco two years ago to double local content by 2021.
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