Two Saudi players team up, aiming to be one of the world’s most competitive OSV builders
International Maritime Industries (IMI), the largest maritime yard in the MENA region, has signed a long-term agreement with Zamil Offshore Services for the delivery of offshore support vessel (OSV) building and maintenance, repair, and overhaul services (MRO) in Saudi Arabia.
IMI reported on Tuesday that this deal would enhance its localisation efforts and boost its lifecycle support services by combining the firm’s facilities with Zamil Offshore’s knowledge and expertise for the establishment of a local, cost-efficient operation for all activities related to the building of OSVs in the country.
The signing of the agreement took place during a ceremony in Dhahran by Fathi Al Saleem, President and CEO of IMI, and Sufyan Al Zamil, CEO of Zamil Offshore. The attendance list included Amin Nasser, CEO and President of Saudi Aramco, Ahmed Al Saadi, Chairman of the Board of IMI, Khalid Al Zamil, Chairman of Zamil Group and executives from IMI and Zamil Offshore.
Ahmed Al Saadi, Chairman of the Board of IMI, commented: “Through this partnership, we look forward to offering customers a highly responsive localized supply chain that reduces risk, lowers costs, speeds up response and build time, and increases customers’ competitive positions.”
The joint venture agreement signed with Zamil – one of the Middle East’s largest shipyards and owners, operating a fleet of over 60 diversified vessels in Saudi Arabia – outlines that IMI employees will be directly integrated into project teams, which will enable them to learn from specialist engineers at Zamil Offshore’s facility. The agreement is expected to support the development of an advanced and sustainable Saudi maritime industry.
Khalid Al Zamil, Chairman of Zamil Group, explained: “With this partnership, we look forward to working together to achieve the Kingdom’s ambitious vision for this important industry.”
The joint venture aims to become one of the world’s most competitive OSV builders and maintenance, repair and overhaul (MRO) service providers with the support of IMI’s founding partners, Saudi Aramco, Lamprell, and HHI.
The building of OSVs will first take place at Zamil Offshore’s facility in Saudi Arabia, while the construction activities will be moved to Zone B of IMI’s full-service yard in Ras Al Khair, once it becomes operational in 2022.
“This signing marks a significant milestone for IMI and its ability to produce and service offshore support vessels here in the Kingdom,” added Al Saadi.
More long-term partnerships with suppliers that are committed to the localisation of the maritime industry in Saudi Arabia are part of IMI’s plans for the future.
Pursuing this aim, the firm signed another long-term agreement with JSA Loadmaster in August this year to enhance its efforts towards localising its supply chain in Saudi Arabia.
This agreement between IMI and JSA Loadmaster is expected to contribute around SAR 750 million ($200 million) to the Saudi economy over the next eight years.