The Saudi Arabian Industrial Investments (Dussur) announced the signing of five new shareholders' agreements, including four joint ventures and one global acquisition deal.
Dussur, owned by PIF, Aramco, and SABIC, signed the agreement at a special event attended by Minister of Energy and Investment Prince Abdulaziz bin Salman, Minister of Industry and Mineral Resources, Bandar al-Khorayef, Minister of Education Hamad al-Sheikh.
The event was held at King Abdullah Petroleum Studies and Research Center (KAPSARC).
The first JV agreement was signed with Korea's SeAH Changwon Integrated Specialty Steel Co. Ltd (SeAH) to establish the first local seamless stainless-steel pipe production plant in Saudi Arabia.
The total investment for establishing the joint venture is estimated at $270 million. SeAH and Dussur will invest up to $140 million with a percentage share of 51 percent and 49 percent, respectively.
The Saudi Industrial Development Fund will provide the remaining financing for the joint venture.
The second joint venture agreement was signed between Dussur, Tatweer Educational Transportation Services Company, and CHTC KINWIN Automobile to establish the first state-of-the-art bus manufacturing facility in Saudi Arabia with an annual production capacity of 3000 buses.
The project is in line with 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 company will manufacture and assemble several bus models in the first phase, using three engine technologies: Internal combustion engine, pure electrical, and hydrogen fuel cell.
The company will primarily 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 transportation.
The third JV agreement announced at the event was between Dussur and 3D Systems to establish the Center for Innovation and Additive Manufacturing in the Kingdom.
It will provide on-demand printing and application engineering solutions for critical industries such as energy, aerospace, defense, and healthcare.
The initiative will support the Kingdom's path to industrialization by localizing disruptive technologies, contributing to supply security, and building unique capabilities for future jobs.
Dussur and Baker Hughes signed the fourth joint venture agreement to build a blending and chemical reaction facility with a production capacity of 30,000 tons to produce demulsifiers, scale inhibitors, corrosion inhibitors, and biocides.
The facility will be located in Jubail City, Saudi Arabia.
Dussur also announced the successful completion of an acquisition agreement with the international private equity consortium Broad Peak Global (BPG) and Asia Green Fund (AGF) to acquire the Clean Technologies business of DuPont de Nemours.
The new, independent company will be named Elessent Clean Technologies. It is worth noting that the new company is a global leader in chemical catalysts and advanced equipment, specializing in environmental sustainability technologies in the metals, fertilizer, chemicals, and oil refining sectors.
CEO of Dussur Raed al-Rayes stated that the company measures the development impact of projects before investing.
Rayes explained that Dussur portfolio has managed to attract more than SR1 billion worth of foreign investment and create more than 2,600 direct jobs by 2030, with an employment nationalization of no less than 65 percent, reaching as high as 90 percent in some projects.
The Saudi Arabian Industrial Investments Company is a strategic industrial investment firm that partners with world-class experts to form state-of-the-art joint ventures, including M&A in the industrial sectors.