1 min read.Updated: 07 Dec 2021, 11:31 PM ISTLivemint
The pact is in line with the Aramco Namaat program, launched in September, which aims to tap into the vast opportunities available in Saudi Arabia to create value, as well as drive economic expansion and diversification.
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Larsen and Toubro (L&T) has signed an initial agreement with the Saudi Arabian Oil Company (Aramco) to develop manufacturing capabilities in Saudi Arabia.
Under the plan, Larsen will build the region’s first Heavy Wall Pressure Vessels facility at Saudi Arabia’s strategically located Jubail Industrial City, the companies said in a joint statement on Tuesday.
The pact is in line with the Aramco Namaat programme, started in September, which aims to tap into the vast opportunities in Saudi Arabia to create value, and also drive economic expansion and diversification.
“This manufacturing facility, once completed, will provide a large number of skilled job opportunities for Saudi youth, localize the “know-how" of heavy wall vessels in the Kingdom, and deploy the latest manufacturing technologies to serve the Kingdom and MENA region. We expect this facility to help Aramco and others in the Kingdom to increase localization and optimize capital cost," said Ahmed Sa’adi, Aramco’s senior vice-president of technical services.
L&T will now start building the new facility, with production expected to commence by the third quarter of 2022. Spread over 120,000 sq. m., the facility aims to produce critical equipment for several industries such as power and oil and gas. “We believe this is another significant milestone for L&T in the Kingdom and a strong testimony to our commitment to the development of the region. We wish to express our gratitude to Saudi Aramco for their guidance and support in the Kingdom," said S.N. Subrahmanyan, L&T’s chief executive.
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