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.