Saudi Aramco, Hyundai Heavy to align on new downstream, EPC business

Saudi Aramco and Hyundai Heavy Industries (HHI) signed a general memorandum of understanding (MoU) to jointly collaborate on business development opportunities in the Kingdom of Saudi Arabia, officials confirmed on Thursday.

The signing ceremony was presided by Amin H. Nasser, president and CEO of Saudi Aramco; Ki-sun Chung, senior vice president of HHI Corporate Planning, accompanied by Jeong-Hwan Kim, chief operating officer of HHI Shipbuilding, and Cheul-ho Park, chief operating officer of HHI IP&E (industrial pant and engineering).

The MoU lays out a comprehensive, multi-faceted business cooperation framework in areas such as engineering, procurement and construction (EPC), downstream, and the development of a casting and forging facility. 

“Our two companies are global leaders in our respective industries, and the MoU cements a strategic relationship between us, with business flourishing on both sides," Nasser said. "The partnership will add greater value to the Kingdom’s economy, boost our localization efforts and help create jobs for Saudi nationals.”

The MoU also covers the development of a world-class maritime yard and the advancement of maritime diesel engine manufacturing in the Kingdom of Saudi Arabia.

The strategic collaboration discussion was initiated when Saudi Aramco’s board of directors visited HHI ‘s Ulsan complex in April 2015.

"The partnership between the two industrial behemoths not only means a great opportunity to enhance Korea's shipbuilding and EPC businesses, but also extends Hyundai's contribution to the Kingdom stretching back to the 1970s, when it was awarded a contract to develop the Jubail port (King Fahd industrial port) project," Chung said. "This signing is significant, as it provides the potential for the creation of another Jubail that creates tremendous growth opportunities for HHI in Saudi Arabia."