DHAHRAN, Saudi Arabia – Saudi Aramco, Dussur – the Saudi Arabian Industrial Investments Co. – and Hyundai Heavy Industries (HHI) have a memorandum of understanding to collaborate in an engines/pumps venture.
They plan to form a joint venture to manufacture two-stroke engines, four-stroke engines, and marine pumps, also providing sales and aftersales services in the Middle East North Africa region.
The manufacturing facility will be located at themaritime yard in Ras Al-Khair, at the King Salman International Complex for Maritime Industries and Services, with the intention of developing synergies with various complementary ventures.
It will produce four-stroke engines under HHI’s HiMSEN brand licensing, in part supporting marine applications for very large and small vessels. It will operate under a MAN-HHI sublicense for manufacture and service of two-stroke engines.
The three parties are targeting lower production costs by taking making use of machine-finished steel and iron components for engines and pumps from the casting and forging facility joint venture in Ras Al-Khair; and fixed and variable cost synergies related to the integration of two- and four-stroke engines in one shop.
Aramco expects the engine and pump venture to start operating by end-2019, and to create more than 650 direct jobs and further indirect jobs through the development of the supply chain.