Saudi Dussur signs five new deals, including $270m pipe factory
Saudi Arabian Industrial Investments Company (Dussur), owned by PIF, Aramco and Sabic, has signed five new shareholder agreements governing four joint ventures, including a $270 million steel tube factory and a global acquisition.
In addition, there is an agreement with the Local Content Authority and a Memorandum of Understanding with the Human Resource Development Fund “Hadaf”.
These agreements and MoUs were announced at a special event attended by Prince Abdulaziz Bin Salman, Minister of Energy and Investment, Bandar Alkhorayef, Minister of Industry and Mineral Resources, Hamad Al-Sheikh, Minister of Education at the King Abdullah Petroleum Studies and Research Center (Kapsarc) on March 29, 2022.
First Local Seamless Stainless Steel Tube Factory
The first joint venture agreement was signed with Korean company SeAH Changwon Integrated Specialty Steel Co Ltd (SeAH) to establish the first local seamless stainless steel tube production plant in Saudi Arabia at (SPARK). The total investment for the creation of the joint venture is estimated at 270 million dollars.
SeAH and Dussur will invest up to $140 million with a percentage share of 51% and 49% respectively. The rest of the funding for the joint venture will be provided by the Saudi Fund for Industrial Development.
The second joint venture agreement was signed between Dussur, Tatweer Educational Transportation Services Company and CHTC KINWIN Automobile Co to establish the first state-of-the-art bus manufacturing plant in Saudi Arabia with an annual production capacity of 3,000 buses .
Automotive industry location
This project is in line with the kingdom’s Vision 2030 and is significant as it is the first of its kind in Saudi Arabia and will support the localization of the automotive industry and the development of the automotive ecosystem.
The Jeddah-based joint venture will manufacture and assemble several bus models in the first phase, using three types of engine technologies: internal combustion engine, pure electric and hydrogen fuel cell. The company will mainly serve the growing local demand, which is currently met by imports, and the growing demand for buses for Hajj and Umrah, schools, tourism and public transport.
The third JV was between Dussur and 3D Systems to establish the Additive Manufacturing and Innovation Center in the kingdom. The joint venture will provide on-demand printing and application engineering solutions for key industries such as energy, aerospace, defense and healthcare.
Localization of disruptive technologies
This initiative will support the kingdom’s industrialization path by locating disruptive technologies, contributing to security of supply and creating unique capabilities for the jobs of tomorrow.
The fourth joint venture agreement was signed between Dussur and the American company Baker Hughes for the construction of a mixing and chemical reaction unit with a production capacity of 30,000 tonnes to produce demulsifiers, antiscalants, corrosion inhibitors, biocides, etc.
The facility will be located in the city of Jubail, Saudi Arabia. The range of products manufactured in the joint venture mainly meets the needs of refineries and companies related to oil services.
Dussur also announced that it has entered into an acquisition agreement with international private equity consortium BroadPeak Global LP (Broad Peak Global) and Asia Green Fund (AGF) to acquire the Clean Technologies business of DuPont de Nemours.
The new independent company will be called Elessent Clean Technologies (Elessent). The new company is a world leader in chemical catalysts and advanced equipment, specializing in environmental sustainability technologies in the metals, fertilizers, chemicals and petroleum refining industries.
Dr. Raed Al Rayes, CEO of Dussur Company, considered that the signing of these agreements is a remarkable transformation for Dussur and a practical demonstration of its mission to invest in the industrial sector of the kingdom and to bring technologies and knowledge. – do to take advantage of the existing kingdom. resources and create more value.
“At Dussur, we measure the development impact of projects before investing. The Dussur portfolio has successfully attracted over SR1 billion ($270 million) in foreign investment and created over 2,600 direct jobs by 2030, with a nationalization of employment of no less than 65%, reaching up to 90% in some projects, in addition to the expected added value to the gross domestic product (GDP), which rises to SR50 billion over the next twenty years,” Dr. Al Rayes added.– TradeArabia Press Service
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