Aramco, Hyundai plan pump, engine venture

Saudi Aramco, Dussur, and Hyundai Heavy Industries have a memorandum of understanding to collaborate in an engines/pumps venture.

Offshore staff

DHAHRAN, Saudi ArabiaSaudi 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.

07/05/2017

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