State-owned oil giant Saudi Aramco and Hyundai Heavy Industries (HHI) Group have signed a general memorandum of understanding (MoU) to jointly collaborate on business development opportunities in Saudi Arabia.

The signing ceremony was presided by Amin H Nasser, president and CEO of Saudi Aramco and Ki-sun Chung, senior vice president of HHI Corporate Planning.

Jeong-Hwan Kim, chief operating officer (COO) of HHI Shipbuilding; and Cheul-ho Park, chief operating officer (COO) of HHI IP&E (Industrial Plant and Engineering) also attended the event.

The MoU lays out a comprehensive, multi-faceted business cooperation framework in areas such as engineering, procurement and construction (EPC), downstream, and the development of a casting and forging facility, said a statement.

The MoU also covers the development of a world class maritime yard and the advancement of maritime diesel engine manufacturing in the kingdom, it said.

The strategic collaboration discussion was initiated when Saudi Aramco’s board of directors visited HHI’s Ulsan complex in April 2015, it added.

Saudi Aramco has championed the development of a comprehensive maritime yard within Ras Al-Khair, in coordination with the National Shipping Company of Saudi Arabia (Bahri) and HHI as potential partners. The yard will leverage the companies’ expanding offshore business to accelerate localisation efforts of the kingdom’s young and promising maritime industry and its associated supply chain, said the statement.

The collaborative partnership also extends to opportunities in areas such as: EPC, downstream opportunities and electric equipment manufacturing. The two companies agreed to further explore other collaboration opportunities as they arise, it stated.

It is Saudi Aramco’s and HHI’s common view, that this strategic alliance enables the two companies to meet growing demand in the Middle East in various new business areas, it added.

Nasser said: “Our two companies are global leaders in our respective industries and the MoU cements a strategic relationship between us, with business flourishing on both sides.”

“The partnership will add greater value to the country’s economy, boost our localisation efforts and help create jobs for Saudi nationals,” he said.

Chung said: “The partnership between the two industrial behemoths not only means a great opportunity to enhance Korea's shipbuilding and EPC businesses, but also extends Hyundai Groups’ contribution to Saudi Arabia stretching back to the 1970s when it was awarded a contract to develop the Jubail port (King Fahd industrial port) project.”

“This signing is significant as it provides the potential for the creation of another Jubail that creates tremendous growth opportunities for HHI in Saudi Arabia,” he added. – TradeArabia News Service