Saudi Aramco and logistics provider DHL Supply Chain have announced the signing of a shareholders’ agreement for a new procurement and logistics hub in Saudi Arabia.
The new facility is to enhance supply chain efficiency and sustainability in the country.
It would be the region’s first such hub catering to customers in the industrial, energy, chemical and petrochemical sectors.
The joint venture aims to be operational in 2025 and provide reliable end-to-end integrated procurement and supply chain services for companies across the industrial, energy, chemical and petrochemical sectors.
The joint venture would initially focus on Saudi Arabia, with plans to expand across the MENA region in future.
Aramco’s preeminent energy and industrial supply chain ecosystem and DHL’s world-class logistics expertise are expected to enable the joint venture to add value in meeting customers’ supply chain purchasing, warehouse and inventory management, transportation and reverse logistics needs.
Amin H. Nasser, Aramco President and CEO, said the partnership brings together two industry leaders, each with long and storied histories.
“By combining the exceptional energy, chemicals and industrial supply chain ecosystem of Aramco with the world-class shipping and logistics expertise of DHL, we aim to enable the procurement and logistics hub joint venture to serve as a one-stop hub for customers’ supply chain needs. We anticipate that it will not only advance the economic goals of our two companies but also accelerate growth across Saudi Arabia and the MENA region,” he said.
Oscar de Bok, DHL Supply Chain CEO, said the company was excited to announce the signing of the agreement with Aramco.
“Through it, DHL intends to foster its business operations and logistics networks throughout Saudi Arabia and the MENA region, while expanding our industrial footprint,” he said.
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