Saudi Aramco, DHL announce joint venture
Saudi Aramco, one of the world’s leading integrated energy and chemicals companies, and global logistics company DHL announced the signing of a shareholder agreement to create a new global hub for procurement and logistics services in the Kingdom of Saudi Arabia with the aim of contributing to enhancing supply chain efficiency and sustainability. The center, which is the first of its kind in the region, meets the needs of companies operating in the industrial, energy, chemical and petrochemical sectors.
The joint venture, which is expected to be operational by 2025, aims to provide integrated and reliable procurement and supply chain services to companies operating in various sectors of industry, energy, chemicals and petrochemicals. It is expected that the project will initially focus on the center’s activities within the Kingdom, with the possibility of expanding its services in the future to include the Middle East and North Africa region. The joint venture will combine Saudi Aramco’s industry-leading energy supply chain system with DHL’s global expertise in logistics. It seeks to add value to meet procurement services, warehouse and inventory management, transportation, and reverse logistics.
The joint venture aims to achieve best industrial practices in procurement and supply chain management, as well as work to adopt more sustainable solutions in the field of supply
chain, transportation and warehousing.
On this occasion, the President and Chief Executive Officer of Saudi Aramco, Eng Amin bin Hassan Al-Nasser, said: “We are proud of signing this agreement to establish a company based on an innovative business model through which a platform is created that serves as a huge electronic market to serve companies operating in the energy and chemicals sector in supplying their needs.” Equipment, industrial materials and spare parts. The project will focus in the first phase on the Kingdom with the aspiration at a later stage to extend its business to serve companies in the Middle East and North Africa. The new project builds on the strengths of Saudi Aramco, which is characterized by a large system with high reliability for procurement and warehouse management to meet the projects and operational business, and builds on the strengths of DHL,
which has extensive and long-standing global experience in the field of freight and logistics to meet the needs of a large customer base.
For his part, CEO of DHL, Oscar de Boeck, said: “We are pleased to announce the conclusion of this agreement with Saudi Aramco, through which the company aims to enhance its business and its logistics service network throughout the Kingdom of Saudi Arabia and the Middle East and North Africa region, In addition to expanding our presence in the industrial sector, we aim, by working with Saudi Aramco, to provide regional and multinational companies operating in these sectors with a strong global logistics network, promote positive economic growth, and encourage them to adopt sustainable activities.”
This joint venture is subject to regulatory approvals and customary closing conditions.