Saudi Arabia to Transform 4,000 Factories into Advanced, Higher-Quality Industries

The Saudi Ministry of Industry and Mineral Resources and the Saudi Authority for Industrial Cities and Technology Zones (MODON) sign a Memorandum of Understanding with OXAGON to cooperate in the implementation of the Future Factories Program. (Asharq Al-Awsat)
The Saudi Ministry of Industry and Mineral Resources and the Saudi Authority for Industrial Cities and Technology Zones (MODON) sign a Memorandum of Understanding with OXAGON to cooperate in the implementation of the Future Factories Program. (Asharq Al-Awsat)
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Saudi Arabia to Transform 4,000 Factories into Advanced, Higher-Quality Industries

The Saudi Ministry of Industry and Mineral Resources and the Saudi Authority for Industrial Cities and Technology Zones (MODON) sign a Memorandum of Understanding with OXAGON to cooperate in the implementation of the Future Factories Program. (Asharq Al-Awsat)
The Saudi Ministry of Industry and Mineral Resources and the Saudi Authority for Industrial Cities and Technology Zones (MODON) sign a Memorandum of Understanding with OXAGON to cooperate in the implementation of the Future Factories Program. (Asharq Al-Awsat)

The Saudi Ministry of Industry and Mineral Resources and the Saudi Authority for Industrial Cities and Technology Zones (MODON) signed a Memorandum of Understanding (MoU) with OXAGON, home to advanced and clean industries in NEOM, to cooperate in the implementation of the Future Factories Program.  

The Future Factories Program aims to analyze factories' operational readiness by assessing their Smart Industry Readiness Index (SIRI) and transform over 4,000 factories into advanced and higher-quality industries through automation and enhanced efficiency, raising the sector's global competitiveness.  

The MoU aims to develop legislation, incentives, and enablers to support the Program to remove barriers to industrial innovation in the Kingdom.  

Experts from all parties will assess the industry's readiness and explore ways to integrate advanced manufacturing technologies, such as artificial intelligence, 3D printing, and the Internet of Things (IoT), into manufacturing industries.  

Deputy Minister of Industry and Mineral Resources Osama al-Zamil said that the agreement laid the groundwork for implementing the Future of Factories.  

Zamil explained that the Ministry seeks to enhance the competitiveness of local industries and create significant job opportunities in critical areas for the Saudi youth in line with the goals of Vision 2030.  

"We are promoting local manufacturing, enhancing current factories according to world-class standards, and establishing state-of-the-art manufacturing facilities that guarantee higher efficiency and increased productivity." 

NEOM and OXAGON are pioneers leading the way in cutting-edge technology and industry and are ideally placed to inspire future industries and the next generation of talent in Saudi Arabia.  

NEOM CEO Nadhmi al-Nasr said the memorandum represents a significant milestone in realizing the signatories' shared ambitions to sustainably future-proof industries and drive economic diversification across the country.  

OXAGON represents the future of advanced clean industries and will be powered by 100 percent renewable energy.  

Nasr explained: "Together with the Ministry of Industry and Mineral Resources and MODON – whom we enjoy close relationships with – we will deploy our considerable collective resources and talents to develop such industries for the Kingdom and the world."  

OXAGON CEO Vishal Wanchoo sressed that OXAGON is continuously seeking new ways to transform the future of manufacturing and create a sustainable industrial blueprint for the world.  

"By mixing the state-of-the-art approaches from Industry 4.0, utilization of solely renewable energy and circular economy principles, OXAGON will enable industries of the future to avoid environmental degradation and preserve efficiency and profitability," said Wanchoo.  

He noted that the Advanced and Clean Manufacturing Improvement Tool would play a critical role in supporting the local industry through this important transition.  

During the next several months, OXAGON and MODON will form a joint working group to develop an action plan to implement the programs.  

Efforts will be devoted to developing a policy program and work models to create future industries. 

Launched in November, OXAGON is a new paradigm where technology, industry, and people come together harmoniously with nature.  

OXAGON will be home to NEOM's advanced and clean industries, a research and innovation hub, an automated and integrated port, a supply chain network, and several thriving communities. 



Report: US Ready to Reopen Oil Stockpile if Petrol Prices Surge Again

FILE PHOTO: A view of the Phillips 66 Company's Los Angeles Refinery (foreground), which processes domestic & imported crude oil into gasoline, aviation and diesel fuels, and storage tanks for refined petroleum products at the Kinder Morgan Carson Terminal (background), at sunset in Carson, California, US, March 11, 2022. REUTERS/Bing Guan/File Photo
FILE PHOTO: A view of the Phillips 66 Company's Los Angeles Refinery (foreground), which processes domestic & imported crude oil into gasoline, aviation and diesel fuels, and storage tanks for refined petroleum products at the Kinder Morgan Carson Terminal (background), at sunset in Carson, California, US, March 11, 2022. REUTERS/Bing Guan/File Photo
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Report: US Ready to Reopen Oil Stockpile if Petrol Prices Surge Again

FILE PHOTO: A view of the Phillips 66 Company's Los Angeles Refinery (foreground), which processes domestic & imported crude oil into gasoline, aviation and diesel fuels, and storage tanks for refined petroleum products at the Kinder Morgan Carson Terminal (background), at sunset in Carson, California, US, March 11, 2022. REUTERS/Bing Guan/File Photo
FILE PHOTO: A view of the Phillips 66 Company's Los Angeles Refinery (foreground), which processes domestic & imported crude oil into gasoline, aviation and diesel fuels, and storage tanks for refined petroleum products at the Kinder Morgan Carson Terminal (background), at sunset in Carson, California, US, March 11, 2022. REUTERS/Bing Guan/File Photo

The Biden administration is ready to release more oil from the US strategic stockpile to stop any jump in petrol prices this summer, the Financial Times reported on Monday.

Senior Biden adviser Amos Hochstein told the newspaper that oil prices are "still too high for many Americans” and he would like to see them “cut down a little bit further.”

Hochstein, speaking to the FT said that the US would "continue to purchase into next year, until we think that the Strategic Petroleum Reserve (SPR) has the volume that it needs again to serve its original purpose of energy security."

The Energy Department this year has been buying about 3 million barrels of oil per month for the SPR after selling 180 million barrels in 2022 following Russia's invasion of Ukraine. The move was an effort to curb gasoline prices that spiked to more than $5.00 a gallon, but it also reduced the reserve to its lowest level in 40 years.

Earlier this month, Energy Secretary Jennifer Granholm told Reuters that the US could hasten the rate of replenishing the SPR as maintenance on the stockpile is completed by the end of the year.