Saudi Aramco, Dussur, Hyundai sign MoU for engine manufacturing project

JEDDAH: Saudi Aramco, the Saudi Arabian Industrial Investments Company (Dussur) and Hyundai Heavy Industries (HHI) on Wednesday announced the launch of a joint venture to manufacture 2-stroke and 4-stroke engines and marine pumps.

A memorandum of understanding (MoU), in this regard, has been signed, which lays out a comprehensive cooperation framework for the joint venture in the Kingdom. The project not only envisages manufacture of engines and pumps but it will also offer sales and aftersales services in the Middle East and North Africa (MENA). According to a press release issued by Saudi Aramco, the manufacturing facility will be co-located with the maritime yard in Ras Al-Khair at the King Salman International Complex for Maritime Industries and Services, where it will develop synergies with several complementary ventures.

The joint venture will manufacture 4-stroke engines under HHI’s HiMSEN brand licensing, serving as a regional production stronghold to support the growing demand for electricity in the MENA region as well as marine applications for large and small vessels. It will also operate under a MAN-HHI sublicense for the manufacturing and servicing of 2-stroke engines.

The project is expected to generate over 650 direct jobs, as well as indirect jobs through the development of the supply chain. The joint venture will commence operations by the end of 2019, the press release said.

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Dussur and GE sign power sector joint venture worth more than SAR 1 billion

*In line with Saudi Vision 2030, Dussur and GE support Saudi Arabia’s growing industrial sector *Dussur and GE partner to localize the manufacturing of gas turbines in Dammam

Riyadh, Saudi Arabia; May 24, 2017: Dussur (formerly operating under the name Saudi Arabian Industrial Investments Company) and GE (NYSE: GE) have signed a joint venture agreement worth more than SAR 1 billion. This announcement follows the Summit held earlier this week between His Royal Highness King Salman bin Abdulaziz Al Saud and U.S. President Donald Trump and is part of the announcement GE made on May 20.

The agreement represents significant progress towards achieving the Saudi Vision 2030 by continuing to localize gas turbine manufacturing in Saudi Arabia and helping to further develop a global industrial supply chain for the energy sector. It follows a strategic Memorandum of Understanding signed between Dussur and GE last year that is expected to result in nearly SAR 3.75 billion of co-investment by the two companies across multiple sectors in 2017.

The joint venture will create the capacity to supply the majority of Saudi Arabia’s annual demand for gas turbines needed to satisfy the Kingdom’s growing electricity demands. This investment will create added economic value, contribute to the national economy, and boost the local supply chain to benefit Saudi small and medium enterprises (SMEs). Under this agreement, GE and Dussur will strengthen ‘Made in Saudi’ capabilities by expanding manufacturing processes specifically around gas turbine component technology.

Commitment to economic growth

H.E. Abdullatif bin Ahmed Al-Othman, Chairman of Dussur commented: “This landmark partnership between Dussur, a strategic industrial investments and development company, and GE, world renowned technology leader, underlines the commitment of Saudi Arabia to be a global player in the industrial sector in line with the goals of Saudi Vision 2030. This joint venture will contribute to stronger localized manufacturing ecosystems in Saudi Arabia. By creating a global supply chain we can unlock new growth opportunities that benefit the people of both nations.”

“In line with Saudi Vision 2030, Dussur has been established to be a driver of economic diversification, value creation and talent development,” said Rasheed Al-Shubaili, CEO of Dussur. “Dussur works with global partners to create a dynamic industrial ecosystem in the Kingdom that will strengthen Saudi Arabia’s economic competitiveness. Through the strength of our partnerships inside the Kingdom, our agility and our local market knowledge, Dussur is an investment partner that can enhance an international company’s reach into Saudi Arabia and the regional market. With this joint venture, we are setting a global model for building industrial ecosystems that supports the growth of local economies. These investments and opportunities strengthen the Kingdom’s position as a manufacturing hub for the energy industry.”

Paul McElhinney, President & CEO, GE’s Power Services, GE Power said: “The joint venture underscores GE’s firm commitment to the Kingdom’s Vision 2030, building on its key business growth priorities and emphasizing the growing importance of localization. The reciprocal investment between nations is a natural progression of a fundamentally strong partnership, taking the collaboration to new heights and allowing for the acceleration of key infrastructure projects and their subsequent impact on jobs, supply chains and overall economies.”

Joe Mastrangelo, President and CEO, GE’s Gas Power Systems, GE Power said: "This agreement builds off of GE's eight-decade history in Saudi Arabia. We are expanding our state-of-the-art local manufacturing capabilities and have the ability to build a wide range of gas turbines in the Kingdom. Together with Dussur and in support of Vision 2030, we will better serve our customers in the Kingdom and across the region as the demand for power continues to grow.”

The World Energy Council estimates that the GCC will require 10 gigawatts (GW) of additional power over the next ten years, marking an investment of over SAR 180 billion in new power generating capacity. Across the region, demand for power is increasing at an average annual rate of 8 percent. The agreement is expected to have  impact on the Saudi economy as the investment in the energy sector by Dussur and GE will help to address these needs by supplying essential equipment for the power generation sector.

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Note to Editors

About Dussur:

Dussur is a joint venture of Saudi Arabian Public Investment Fund (PIF), Saudi Aramco and Saudi Arabia Basic Industries Corporation (SABIC). The mandate of the company is to invest in and develop viable and sustainable businesses that directly enable the development and growth of strategic industrial sectors and their value chains in the Kingdom. Dussur will promote the economic diversification and localization of industrial value chains and manufacturing capabilities in the Kingdom through its investments and thereby stimulate private sector and SME industrial investment activities. It is targeting to create a significant number of quality jobs for the Kingdom's citizens through its investments in the targeted industrial sectors

About GE:

GE (NYSE: GE) is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the "GE Store," through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry. www.ge.com

About GEMTEC:

GE opened Phase II of GEMTEC last year, transforming it into the region’s first ‘Brilliant Factory’. A ‘Brilliant Factory’ features the highest standards of operational efficiency and productivity, as well as lower costs and real-time monitoring to achieve reduced downtime. Phase II has already rolled off a 7F gas turbine in addition to gas compression trains.

The company’s largest heavy duty gas turbine repair shop globally, GEMTEC Phase I employs more than 300 skilled workers, over 65 percent of them Saudi professionals.

For more information on Dussur, please contact:

Bandar S. Alghamdi

Director of Corporate Communications & Branding

M +966 5656 8 5656, T +966 11 826 5000

Bandar.Alghamdi@Dussur.com

For more information on GE, please contact:

Stephen McCallion

Communications Leader, Saudi Arabia & Bahrain

+966 549196404

stephen.mccallion@ge.com

Kelly Home | Nivine William

ASDA’A Burson-Marsteller

+9714 4507 600

kelly.home@bm.com | nivine.william@bm.com

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DUSSUR and GE sign MoU for US$3 (SAR11.25) billion joint investments to expand localized manufacturing in Saudi Arabia

*Roll-out of over US$1 billion joint investments over the next year followed by potential investment of US$2 billion in energy, aviation, digital and other sectors from 2017

*Projects to contribute to transformation of Saudi economy through industrial diversification, value chain localization, strengthening private sector and SME investment and creating quality jobs for Saudi nationals

Jeddah, Saudi Arabia; May 23, 2016: DUSSUR and GE (NYSE: GE) have signed a Memorandum of Understanding (MoU) to co-invest in strategic sectors that will help develop and localize industrial value chains in Saudi Arabia to serve the domestic market and beyond.

Joint investments of US$1 billion (SAR3.75 billion), will be rolled out by 2017, in addition to an aggregate potential investment of US$2 billion (SAR7.5 billion) to drive projects in water, energy, aviation, digital and other sectors from 2017.

Complementing the goals of Saudi Vision 2030, the overarching aim of the agreement is to establish transformative projects that will promote industrial diversification, deepen manufacturing capabilities in the Kingdom, build industrial know-how and create quality jobs for Saudi nationals. This will be through joint ventures in advanced manufacturing facilities in the Kingdom as well as by developing emerging digital and other industrial technological capabilities in Saudi Arabia.

DUSSUR and GE will also co-develop wide-ranging digital industrial applications and solutions that aim to foster home-grown digital innovation. The software solutions will cover data visualization, big data management, and data analytics, among others.

H.E. Eng. Abdullatif Al-Othman, DUSSUR Chairman of the Board, said: “This agreement with GE to form joint ventures and co-invest in strategic, high-growth industrial and digital sectors, is at the core of DUSSUR’s mission and supports the Saudi Vision 2030 to strengthen the Kingdom’s economic diversification. DUSSUR’s mandate is to invest in and establish strategic industrial value chains in Saudi Arabia that promote the development of local manufacturing capabilities, quality jobs and attract new technologies and investments. This strategic alliance with GE is an ideal fit to deliver on these goals, and together we will contribute to the long-term economic competitiveness and diversified growth of the Saudi economy.”

Jeffrey Immelt, Chairman & CEO of GE, said: “We are honored to be among the first companies to partner with DUSSUR in meeting its strategic development goals of Saudi Vision 2030. We will work together to build manufacturing capabilities of GE in Saudi Arabia and develop more ‘Made in Saudi’ high-tech technology, creating a robust local supply chain. The agreement will also lead to strengthening the culture of digital innovation in the Kingdom. The joint investment and collaboration will be a game changer for the Kingdom’s industrial and digital sectors.”

A joint venture of Saudi Arabian Public Investment Fund (PIF), Saudi Aramco and Saudi Arabia Basic Industries Corporation (SABIC), DUSSUR has the mandate to investing in and developing globally competitive industrial sectors in the Kingdom. It focuses on driving inward investments to the Kingdom through joint ventures and partnerships with global industry leaders.

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DUSSUR’S CEO OUTLINES COMPANY’S DIVERSIFICATION VISION AT SAUDI DOWNSTREAM CONFERENCE

Khobar, Kingdom of Saudi Arabia; March 9, 2016: The CEO of DUSSUR outlined the major role the newly formed organisation will play in promoting the Kingdom’s economic diversification by establishing profitable companies that will stimulate private sector industrial investments.

In a speech at the Saudi Downstream conference in Jubail, Rasheed Al-Shubaili also explained how DUSSUR will support the national diversification agenda of Saudi Arabia’s leadership.

DUSSUR is a joint venture between the Saudi Arabian Public Investment Fund (PIF), Saudi Aramco and SABIC (Saudi Basic Industries Corporation) with a mission to support the establishment of globally competitive industrial sectors. The company will focus on investments in the Kingdom through joint venture partnerships with global industry leaders, with each investment designed to be sustainable and actively contribute to the development of strategically important industrial value chains.

The Saudi Downstream conference was selected for this important speech given the petrochemical’s sector significant contribution towards economic diversification in Saudi Arabia over the last decade. It was also the conference where Prince Faisal Bin Turki Al Saud first outlined the requirement for an investment and development company like DUSSUR.

Al-Shubaili said: “The notable accomplishments of the Kingdom’s petrochemical sector are both an inspiration and a roadmap for DUSSUR as we begin to deliver on our critical mission. Inspired by the words of Prince Turki bin Faisal and in line with the vision laid out by the leadership of the Kingdom, DUSSUR is now operational and ready to develop sectors that will provide quality, skilled jobs for Saudi nationals for generations to come.”

During his speech, Al-Shubaili noted that while the Kingdom’s diversification has increased in recent years, including through the greater participation of the private sector and numerous government initiatives, there remains room to advance the agenda.

“As a country, we still import a large portion of our downstream equipment and services in sectors where we have large demand. DUSSUR will work to close this gap,” he said. “We will do this by addressing several barriers. For example, we know that the long-term capital intensive nature of such industrial investments does not meet the preferred risk appetite of private investors, and that diversified industrial sectors require cluster enabling investments. We also understand that potential partners require a trusted, active equity partner in the Kingdom that can facilitate access to the developing sectors.”

Although DUSSUR is a new investment and development company, Al-Shubaili confirmed that industrial investments – including those made in and around manufacturing – would be priority for initial investments. Some of the sectors DUSSUR will pursue include: Oil & Gas Equipment and Services and Power, Water and Utilities Equipment. Al-Shubaili announced that other sectors will follow.

“We also know that a key driver of our investments will be to complement and enable the work of the private sector in Saudi Arabia and create new opportunities for growth at the SME level,” he said.

Al-Shubaili was appointed DUSSUR CEO in 2015 following more than two decades spent in senior leadership roles in the Kingdom’s industrial sector, with a particular focus on building and delivering joint ventures and mega projects. He began his career with SABIC in the early 1990s, holding multiple roles before being named Vice-President Engineering and Project Management.

Al-Shubaili concluded: “We in DUSSUR have been entrusted with an exciting and challenging mission. With the backing of the government of Saudi Arabia and our shareholders, we have all of the elements needed to develop new economic opportunities that will benefit the Kingdom and its people for decades to come.”

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