IMI Saudi Industry’s Damman facility has signed its first Corporate Procurement Agreement (CPA), with Saudi Arabian Oil Company (Saudi Aramco).
The CPA, for the order of severe service valves, was signed by Ahmed Alsehimi, General Manager of IMI Saudi Industry, and became effective on 15th December 2022. The 2-year, but extendable to 10-year, agreement reflects the new strategic partnership between Saudi Aramco and IMI Saudi Industry, for the manufacture and supply of IMI Orton and IMI Truflo Italy products.
The valves will be manufactured in line with the Saudi Government’s 2030 Vision and IKTVA (In Kingdom Total Value Add) program, which urges suppliers to invigorate the supply chain by achieving 70% localisation1. According to Jackie Hu, Divisional Managing Director at IMI Critical Engineering, the partnership demonstrates IMI Saudi’s commitment to bolstering national manufacturing capabilities.
“Having a range of highly engineered valves in IMI Critical Engineering’s portfolio to effectively support the Middle East’s oil and gas industry, has made us one of the region’s leading suppliers. Our new, long-term agreement demonstrates that IMI Saudi Industry is fully committed to implementing the IKTVA program to further stimulate regional growth,” says Mr. Hu.
The order follows the official opening of IMI Saudi Industry’s Damman facility in November 2022, following its acquisition in August 2020. The 5,000 sqm site manufactures butterfly valves and ball valves of various sizes and pressure ratings suitable for the oil and gas, petrochemical, power, water, and hydrogen markets. By the end of 2023, the factory will also manufacture choke and control valves, while aiming to increase its team of employees over the next five years.
“Supporting the large-scale adoption of highly engineered flow control solutions to help realise the potential of more efficient practices is a key reason behind our decision to expand production in Saudi Arabia.” Mr. Hu concludes. “In line with the Saudi government’s Vision 2030 strategic framework, our trading agreement with Saudi Aramco is set to bolster national manufacturing capabilities and support localisation plans for key products.
“We are continually looking to expand and strengthen IMI Critical Engineering’s trading partnerships and improve multiple industries’ ability to access globally leading valve and actuating systems. We’re therefore thrilled to have established a trading relationship with Saudi Aramco and are confident the effects will be evident across the region’s supply chain.”