Doosan Heavy Industries to Build Saudi Arabia's Largest Forging Plant in Joint Venture with Aramco

Establishing a Joint Venture with Aramco and Dusur to Build a Factory Worth 1 Trillion Won Locally

At the shareholders' agreement signing ceremony held in Riyadh, Saudi Arabia, Dusur Raed Al Rais, President of Saudi Industrial Investment Corporation (center), Walid Al Saif, President of Saudi Aramco Development Company (right), and Jeon Ha-yong, Executive Director of Doosan Heavy Industries, are posing for a commemorative photo. (Photo by Doosan Heavy Industries)

[Asia Economy Reporter Lee Hye-young] Doosan Heavy Industries & Construction announced on the 19th that it will establish the largest casting and forging plant in Saudi Arabia through a joint venture with Saudi Arabia's state-owned oil company Aramco and others.

On the 18th (local time), Doosan Heavy Industries & Construction signed an amended shareholders' agreement for the establishment of a casting and forging joint venture company (TWAIG Casting & Forging) with Saudi Industrial Investment Company Dusur and Aramco Development Company, a wholly owned subsidiary of Aramco, in Riyadh, Saudi Arabia.

The signing ceremony was attended by President Moon Jae-in, who was on an official visit to Saudi Arabia, Energy Minister Abdulaziz bin Salman Al Saud, Investment Minister Khalid Al-Falih, Minister of Industry, Minerals and Resources Bandar Al-Khorayef, and Yasir Al-Rumayyan, Governor of the Public Investment Fund (PIF), among others.

Casting is the process of heating and melting metal and pouring it into molds to create metal products of specific shapes, while forging involves heating metal materials to a certain temperature and applying pressure to form specific shapes.

An aerial view of the forging and casting plant jointly built in Saudi Arabia by Doosan Heavy Industries & Construction, Saudi Industrial Investment Company Dusur, and the state-owned oil company Aramco (Photo by Doosan Heavy Industries & Construction)

The joint venture company will be constructed in the King Salman Maritime Industrial Complex in the Ras Al Khair area near Jubail in eastern Saudi Arabia.

Construction will begin this year and is scheduled to be completed in the first quarter of 2025. Covering an area of 400,000 square meters, it will be capable of producing 60,000 tons of casting and forging products annually, making it the largest integrated steelmaking, casting, forging, and processing plant in Saudi Arabia.

The main products will be casting and forging materials used for pumps and valves in petrochemical plants within Saudi Arabia, as well as equipment for shipbuilding and offshore plants. In the long term, production will expand to include casting and forging products for wind power plants and power generation plants.

Doosan Heavy Industries & Construction plans to sign an EPC (Engineering, Procurement, and Construction) contract worth approximately 1 trillion KRW with the joint venture for the construction of the plant. Domestic small and medium-sized enterprises as well as overseas companies from Saudi Arabia and other countries will be invited to participate in competitive bidding for the construction and supply of major equipment.

Park Ji-won, Chairman of Doosan Heavy Industries & Construction, said, "This marks the first overseas market entry for Doosan Heavy Industries & Construction's casting and forging technology, which is highly significant, and through this, we will be able to participate in Saudi Arabia's core industries." He added, "This joint venture will serve as a stepping stone for Doosan Heavy Industries & Construction to expand its business into new fields such as renewable energy."

This content was produced with the assistance of AI translation services.