Aramco signs MoU with Japanese firms to pursue steel production in Saudi Arabia
The project is in support of the iktva (in-kingdom total value add) programme, which is designed to increase the local content in Saudi Aramco's supply chain.
Saudi Aramco recently signed a memorandum of understanding (MoU) with Nippon Steel and Sumitomo Metal Corporation (NSSMC), Sumitomo Corporation, and Sumitomo Corporation Saudi Arabia to conduct a feasibility study for an integrated steel mill to produce steel plates in the Ras al-Khair area.
The MoU was signed by Abdulaziz A Al Abdulkarim, vice president, procurement and supply chain management, Saudi Aramco; Atsushi Iijima, management executive officer, NSSMC; Kazunari Sakata, corporate officer, Sumitomo Corporation; and Masashi Abe, managing director, Sumitomo Corporation Saudi Arabia. The signing was witnessed by Ahmad A Al Sa’adi, senior vice president, technical services, Saudi Aramco, and senior executives from all parties.
“Saudi Aramco is pleased to sign this MoU, which will enhance the local supply chain supporting Saudi Aramco and others in the Kingdom,” said Al Sa’adi. “The presence of the new steel mill will reduce costs, delivery time, and offer better customer service to the local market.”
NSSMC, headquartered in Japan, is the world’s second largest steel producer by volume as of 2017 with more than 90,000 employees, and is involved in the production of steel and finished steel products used in all industries.
Sumitomo Corporation, also headquartered in Japan, is among the world’s oldest and largest integrated trading and investment enterprises, and has a global network consisting of 139 offices and approximately 800 consolidated subsidiaries and associated companies worldwide.
This project is in support of the iktva (in-kingdom total value add) programme, which is designed to increase the local content in Saudi Aramco’s supply chain. Steel plate production goes into the manufacturing of pipes, pressure vessels, marine vessels, offshore platforms, and infrastructure, among other applications.
This collaboration enhances the relationship between Saudi Arabia and Japan, and will support Saudi Vision 2030.