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Image courtesy of Saudi Aramco/Instagram.

Saudi Aramco and Hyundai Heavy Industries (HHI) Group signed a general memorandum of understanding on Thursday to jointly collaborate on business development opportunities in the Kingdom of Saudi Arabia.

The memorandum of understanding (MoU) lays out a comprehensive, multi-faceted business cooperation framework in several areas including engineering, procurement and construction, downstream and the development of a casting and forging facility.

The MoU also covers the development of a “world class maritime yard” and the advancement of maritime diesel engine manufacturing in Saudi Arabia.

The signing ceremony was presided over by Saudi Aramco president and CEO Amin H. Nasser presided over the signing ceremony accompanied by HHI Corporate Planning senior vice president Ki-sun Chung, COO of HHI Shipbuilding Jeong-Hwan Kim and COO HHI Industrial Plant and Engineering Cheul-ho Park.

“Our two companies are global leaders in our respective industries and the MoU cements a strategic relationship between us, with business flourishing on both sides. The partnership will add greater value to the Kingdom’s economy, boost our localization efforts and help create jobs for Saudi nationals,” Nasser said.

The strategic collaboration discussion first began when Saudi Aramco’s board of directors visited HHI ‘s Ulsan complex in April 2015, the companies said.

“The partnership between the two industrial behemoths not only means a great opportunity to enhance Korea’s shipbuilding and EPC businesses, but also extends Hyundai Groups’ contribution to the Kingdom stretching back to the 1970s when it was awarded a contract to develop the Jubail port (King Fahd industrial port) project,” Chung said.