Saudi Arabia’s energy giant Aramco announced Monday that it would be expanding its flagship program to increase local content, boost supply chains and increase employment opportunities for Saudi citizens.
The company’s In-Kingdom Total Value Add (iktva) program, now in its fifth year, will include plans for new international partnerships and the establishment of companies through an Industrial Investment Program (IIP), which is linked to the development of Aramco's business, according to a statement from the company.
Aramco signed memorandums of understanding with Shell & AMG Recycling BV (AMG) from the Netherlands; Chinese firms Suzhou XDM, Shen Gong, Xinfoo and SUPCON; and Posco from South Korea as part of iktva’s expansion.
“These new partnerships will contribute to advancing innovation, sustainability and enhance the scale of reliability in our business ecosystem and, in addition, benefit companies operating in the Kingdom's vast energy and chemicals sector,” Aramco President and CEO Amin Nasser said in the statement.
“These partnerships will also have a strong focus on new technologies, by maximizing our investments in non-metallic materials and the circular carbon economy, as well as the development of talented Saudis in communities where we operate,” Nasser added.
The company noted that the new partnerships will help increase Aramco’s reliability and operational efficiency, while also increasing employment opportunities for Saudis and enhancing the Kingdom’s commercial ecosystem.
“Aramco has a long history of supporting the local business ecosystem. Our iktva program is a manifestation of our commitment to this and the resulting investments, either directly by Aramco or indirectly by suppliers, have promoted localization, contributed to Aramco’s supply chain resilience and enhanced Saudi Arabia’s economic growth,” Aramco Senior Vice President of Technical Services Ahmad al-Saadi said.