Aramco and IMI Saudi Industry have signed a two-year agreement for IMI Saudi Industry’s manufacturing facility that opened in Dammam last year.
The 5,000m2 site manufactures butterfly valves and ball valves of various sizes and pressure ratings suitable for the oil and gas, petrochemical, power, water, and hydrogen markets. By the end of 2023, the factory will also manufacture choke and control valves, while aiming to increase its team of employees over the next five years.
The agreement, which could be extended to 10 years, “reflects the new strategic partnership” between Saudi Aramco and IMI Saudi Industry, for the manufacture and supply of valves, the latter said in a press release.
The valves will be manufactured in line with the Saudi Government’s 2030 Vision and IKTVA (In Kingdom Total Value Add) program, which urges suppliers to invigorate the supply chain by achieving 70% localisation. According to Jackie Hu, divisional managing director at IMI Critical Engineering, the partnership demonstrates IMI Saudi’s commitment to bolstering national manufacturing capabilities.