Category: News

Riyadh, Saudi Arabia - May 28, 2023

Under the auspicious patronage of HRH Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Minister of Energy, and in the presence of HE the Minister of Industry and Mineral Resources, Mr. Bandar Ibrahim Alkhorayef, the Saudi Arabian Industrial Investments Company “Dussur” proudly announced its acquisition of a substantial share in the Italian firm, Italmatch Chemicals.

Dussur's strategic acquisition aligns with its ongoing commitment to localizing advanced technologies in the Kingdom. Italmatch Chemicals, recognized globally as a leader in transformative chemicals, will experience a capital increase of 100 million euros as part of the transaction. These funds are set to drive the establishment and development of specialized factories across Saudi Arabia, boosting the local economy and infrastructure.

Italmatch Chemicals, best known for its manufacturing of advanced performance-enhancing additives, water treatment solutions, and various materials for the petroleum, gas, and plastics industry, will bring diverse expertise to Saudi Arabia. Furthermore, their range of products for the personal care chemicals sector will play a vital role in expanding and diversifying local production capabilities.

During the same event, the inauguration of the National Additive Manufacturing and Innovation company (NAMI), a joint venture between Dussur and US-based company, 3D Systems, was unveiled. NAMI is a first-of-its-kind in the Kingdom innovation center and service bureau. And this partnership was initially announced during the launch event of Dussur's projects at the end of March 2022.

NAMI will provide engineering solutions for 3D printing and on-demand printing for complex parts, offering consultancy, engineering design, reverse engineering, and post-processing services. It will leverage the latest cutting-edge materials, software, and hardware of 3D Systems for polymer and metal-based applications. The company will cater to vital sectors including oil & gas, automotive, aerospace, and health care. It will bolster the Kingdom's manufacturing journey by localizing state-of-the-art technologies, enhancing supply chain resilience, and fostering exceptional capabilities for the jobs of the future. The event also marked the signing of several Memorandum of Understandings (MOUs) and strategic cooperation agreements with key industry partners. Italmatch Chemicals signed on three agreements focusing on the supply of essential materials and technical collaboration to boost local chemical production capabilities. Concurrently, NAMI inked three collaborative MOUs aimed at developing a digital inventory for spare parts, advancing 3D printing in healthcare, and localizing printed spare parts production.

On this occasion, Dr. Raed AlRayes, CEO of Dussur, expressed confidence in Dussur's investment portfolio and its capability to contribute significantly to the supply chain security in the region. He further emphasized Dussur's commitment to leverage the Kingdom's natural resources and facilitate the transfer and localization of technology and knowledge. He stated, "These strategic initiatives align with our vision of fostering private sector investments and enabling complementary investments in production, processing, and distribution activities."

Saudi Arabia, 1 February 2023 SeAH Gulf Special Steel Industries, owned by Saudi Arabian Industrial Investments Company (Dussur) and South Korean SeAH Changwon Integrated Special Steel, broke ground on the construction of the first stainless seamless pipe and tube production plant in the MENA region on Wednesday, February 1, 2023, at King Salman Energy Park (SPARK).

The ground broke by Dussur CEO Dr. Raed Alrayes, and President and CEO of SeAH Holdings Mr. Tae Sung Lee , attended by South Korean Ambassador Mr. joon Yong Park, Executive Vice President of ARAMCO Mr. Ahmad Al-Sa’adi, , Vice Chairman of SeAH Holdings Mr. Eui Sook Park, CEO of SeAH CSS Mr. Sang Eun Lee, and CEO of Dussur Dr. Raed Al-Rayes.

SeAH Gulf Special Steel Industries is a joint venture between Dussur and South Korean SeAH Changwon Integrated Special Steel to establish the first stainless seamless pipe and tube production plant in the MENA region with a production capacity of 20,000 tons per year.

Through SeAH Gulf Special industries past EPC agreement with Sendan International, which has developed a strong position as a contractor in the Kingdom, the plant will be built on a 177,845-square-meter area at SPARK, one of the most developed industrial cities in the Kingdom, for its strategic location which offers integrated industrial, water, and telecommunication services. The plant is expected to begin its commercial operations by 2025.

This project highlights the parties’ shared mission to advance the Saudi industrial sector and serve the kingdom's oil, gas, energy, and water industry through strategic investments and partnerships with local and global entities.

King Salman Energy City SPARK - 12\9\2022 . In an advanced step for the SeAH Gulf Special Steel, owned by the Saudi Arabian Industrial Investments Company Dussur, and the Korean SeAH changwon Integrated special steel Corporation, an industrial land allocation agreement was signed with King Salman Energy City SPARK to establish the first factory specialized in the industrial field of manufacturing Stainless Steel Seamless Pipes in the Middle East and North Africa Region, with an investment of more than 1billion Saudi Riyals.

The agreement represents a strategic partnership between SeAH Gulf Special Steel and Spark to allocate a land area of 177,845 square meters to establish SeAH Gulf Special Steel factory, with a production capacity of 20,000 tons per year. And the importance of SeAH Gulf Special Steel factory lies in the opportunities of attracting global expertise and localizing the stainless-steel pipe industry, by serving the oil and gas sectors in addition to energy and water.

Spark location has been chosen because it is one of the most developed industrial cities in the Kingdom, as it provides integrated industrial services that include electricity and gas supplies, in addition to water and communication services.

On the same day, SeAH Gulf Special Steel signed another agreement granting Sendan International Company the engineering, procurement, and construction contract (EPC) valued at more than 260 million Saudi Riyals, to build the factory, and for a period of 34 months. Sendan has developed a strong position as a contractor in the oil, gas, petrochemical, power, water, and mining in the Kingdom, It is worth noting that this construction contract will achieve local content and localization rates that are compatible with the Local Content and Government Procurement Authority.

It is expected for the commercial operation of the factory to start by 2025, which will result in the transfer and localization of industrial knowledge in the Kingdom, and the creation of 240 technical and engineering job opportunities for the sons and daughters of the Kingdom, in addition to reducing dependence on imports for the of strategic goods in the Saudi Arabia. This was confirmed by the CEO of Dussur, Dr. Raed Al Rayes said: “Dussur was established to be a sustainable investment model that helps develop key industrial sectors and their associated value chains in the Kingdom. This joint venture is an important achievement that will meet the current demand for stainless steel pipes in the Kingdom of Saudi Arabia and the MENA region, in line with Dussur’s mission to empower the industrial sector, maximizing the developmental impact through the transfer and localization of industrial knowledge, creating professional jobs for Saudis, and attracting foreign direct investments, following the objectives of the Saudi Vision 2030.”

Dr. Al Rayes also added that these two signed agreements confirm the ability of Dussur, owned by the Public Investment Fund, Saudi Aramco and Sabic rapid implementation of announced projects.

Dammam, Saudi Arabia; May 16th, 2022

In the presence of His Royal Highness Prince Saud bin Nayef, Governor of the Eastern Province, and His Royal Highness Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy, a memorandum of understanding was signed between the Saudi Arabian Industrial Investments Company (DUSSUR) and the Saudi Petroleum Services Polytechnic (SPSP) to develop human resources to include:

- Support economic diversification through human development

- Train Saudis on new Industrial technologies and automation

- Manage and implement on-job training inside and outside the Kingdom

Dammam, Saudi Arabia; May 16th, 2022

Under the patronage of HRH Prince Abdulaziz Bin Salman, Saudi Minister of Energy, a memorandum of understanding was signed between the Saudi Arabian Industrial Investments Company (DUSSUR) and GE to develop a roadmap to enhance the capabilities of GESAT

- Adding services for operating heavy loads in future gas power generation projects in Saudi Arabia

- Facilitate further transfer of knowledge and capabilities within GESAT

- Adding gas turbine products to enhance the capabilities of GESAT

Riyadh – March 29th, 2022

Under the patronage of HRH Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy, the Saudi Arabian Industrial Investments Company (Dussur), owned by the Public Investment Fund, Saudi Aramco, and the Saudi Basic Industries Corporation (SABIC), announced the signing of four JV agreements with global partners, comprises the establishment of a seamless tube factory, a factory for hydrogen and conventional electric buses, an innovative and manufacturing center for 3D printing, a chemical production plant for oil manufacturing extracted from water, in addition to a global acquisition of a clean technology company that manufactures chemical catalysts and advanced equipment specialized in environmental sustainability technologies in industries such as minerals, fertilizers, chemicals, and oil refining. Moreover, the signing of an agreement with the Local Content and Government Procurement Authority, and an MoU with the Human Resources Development Fund “HRDF”. These agreements and MoU were announced in a special event attended by HRH Prince Abdulaziz Bin Salman, Minister of Investment, H.E. Bandar Alkhorayef, Minister of Industry and Mineral Resources, H.E. Hamad Al-Sheikh, Minister of Education, and (King Abdullah Petroleum Studies and Research Center (KAPSARC) on March 29th, 2022.

The first JV agreement was with the Korean company SeAH Changwon Integrated Specialty Steel Co. Ltd (SeAH) to establish the first local seamless stainless-steel pipes and tubes production plant in the Kingdom of Saudi Arabia located in (SPARK). The total investment for the establishment of the JV is estimated at 270 million USD. SeAH and Dussur will invest up to USD 140 million with a percentage share of 51% and 49% respectively, and the remaining funding for the joint venture will be provided by the Saudi industrial development fund.

The second JV agreement was between Dussur, Tatweer Educational Transportation Services Company, and CHTC KINWIN Automobile Co. to establish the first state-of-the-art bus manufacturing facility in the Kingdom of Saudi Arabia with a yearly production capability of 3000 buses, taking into consideration that this is project is compliant with the Kingdom vision 2030, and highly important for being the first of its kind in Saudi Arabia, and will support the localization of the automobile industry and the development of the automotive ecosystem. Located in Jeddah, the joint venture company will manufacture and assemble several models of buses in its first phase utilizing three types of engine technologies: internal combustion engine, pure electrical, and hydrogen fuel cell. The company will cater mainly to the growing local demand, currently met by imports, and serve the growth in demand for buses used for Hajj & Umrah, schools, tourism, and public transportation”

The third JV agreement announced at the event was between Dussur and 3D Systems to establish The Center for Innovation and Additive Manufacturing in the kingdom. The JV will provide on-demand printing and application engineering solutions to serve key industries such as energy, aerospace, defense, and healthcare. This initiative will support the Kingdom’s industrialization journey by localizing disruptive technologies, contributing to the security of supply, and building unique capabilities for the jobs of the future.

As for the fourth JV agreement, it was between Dussur and the US company Baker Hughes to establish a blending and chemical reaction facility with a production capacity of 30,000 Mts producing Demulsifiers, Scale Inhibitors, Corrosion Inhibitors, Biocides, etc., the range of products produced at the joint venture caters primarily to the needs of refineries, and oilfield service-related companies. The facility will be in Jubail City, Saudi Arabia.

Dussur has also announced the completion of a successful acquisition deal with an international private equity consortium BroadPeak Global LP (Broad Peak Global) and Asia Green Fund (AGF), to acquire Clean Technologies business of DuPont de Nemours, Inc.. The new, independent company has been named Elessent Clean Technologies (“Elessent”). It is worth remarking that the new company is a world leader in the manufacture of chemical catalysts and advanced equipment specializing in environmental sustainability technologies in the industries of metals, fertilizers, chemicals, and oil refining.

Dr. Raed Al Rayes, CEO of Dussur Company, considered that signing these agreements is a remarkable transformation for Dussur, and a practical demonstration of its mission of investing in the industrial sector in the Kingdom, and bringing technologies and know-how in order to adventure from the available resources in the Kingdom to add more value. Moreover, we in Dussur are measuring the development impact of projects before investing. Dussur portfolio has managed to attract foreign investments “FDI” worth over one billion Saudi riyals, and create more than 2,600 direct jobs by 2030, with an employment nationalization of no less than 65% rate and reaching 90% in some projects, in addition to the expected added value to the gross domestic product “GDP” which equivalent to 50 billion Saudi riyals over the next twenty years, Dr. Al Rayes added.

First-of-its-kind facility in the region to offer both sand-casting and open die forging processes (complemented by machining facilities)

The facility is expected to have an annual production capability of 60,000 tons

The facility is expected to create approximately 1,400 direct jobs

The facility is anticipated to be operational in the first quarter of 2025

Riyadh – January 18th, 2022: The Saudi Arabian Industrial Investments Company (Dussur), Saudi Aramco, and South Korea’s Doosan Heavy Industries & Construction Co., Ltd. (Doosan), a subsidiary of the Doosan Group, announced the establishment of Tuwaiq Casting & Forging Company, which is a joint venture (JV) to construct, own and operate a world-scale, integrated casting and forging facility in the industrial city of Ras Al Khair, Saudi Arabia. The production capacity of this project is expected to be 60,000 tons annually of various products used to supply original equipment manufacturers (OEMs) and local manufacturers in many fields including drilling rigs, drilling equipment, engines, and marine services, in addition to providing the local market with the resources needed to produce manufacturing and operating equipment such as valves, pumps, compressors, wellheads, pipe flanges, heat exchangers, gas turbines, and winds. The facility will focus on sand casting and open-die forging, coupled with machining efficiencies.

The project aims to cover the local demand for these products, with plans to expand abroad in regional markets. The JV facility in Ras Al Khair on Saudi Arabia’s east coast is expected to implement strong safety standards and utilize high-efficiency world-class processes to produce high-quality products. It is expected to localize expertise in multiple high-quality fabrication disciplines and create around 1,400 direct jobs. Commercial operation is expected by the first quarter of 2025. Dr. Raed Al-Rayes, CEO of Dussur, said, “Through this strategic investment, we seek to pave the way for the development and advancement of many manufacturing industries - in line with Kingdom’s Vision 2030. The aim of the project is to localize industrial supply chains and sectors such as the oil and gas industry, the marine sector, the automobile industry, and the defense sector. We are working to ensure that this project contributes to enhancing the local content, helping accelerate the growth and development of the manufacturing sector in the Kingdom. In addition to transferring the technical know-how and expertise by our technical partner (Doosan) in the casting and forging industry, benefitting the youth of the country.”He added, “This is a unique facility that will combine melting, casting, forging, and machining capabilities under one roof serving sectors under Dussur’s mandate of catalyzing the development of industrial value chains.”Dr. Al-Rayes concluded, “This wouldn’t have been possible without the support of the government and HRH Crown Prince Mohammad bin Salman, along with other government entities, including the Ministry of Energy, Investment and Industry. Also, we would like to thank the Committee for their support.” “This joint venture is expected to be instrumental in enabling multiple local industrial value chains.

The new facility is also expected to enable OEMs to expand their local spend through sourcing casting and forging components from the joint venture facility, and would eventually enhance their local content, in line with our localization objectives,” said Waleed Al-Saif, Aramco’s Executive Director of New Business Development. “This facility is meant to produce semi-finished and finished cast and forged components to meet the local demand-driven by Saudi Aramco, as well as the existing energy and industrial sectors, with a plan to serve the GCC region.It is also expected to act as a catalyst to unlock and attract future industries to be established within the Kingdom,” added Al-Saif. “This joint venture project represents a significant milestone as we expand overseas with our casting and forging technology,” said Geewon Park, Doosan Heavy Industries & Construction Chairman and CEO. “It will serve multiple industries throughout Saudi Arabia while also serving as a platform to offer our expertise in other emerging business areas such as renewable energy,” Geewon Park added.