Plan to offer top-notch, comprehensive supply chain and procurement services.
The region's first hub of its sort, it serves clients in the industrial, energy, chemical, and petrochemical industries.
Customers should anticipate assistance from Move to increase supply chain effectiveness and cost savings while lowering their carbon footprint through more environmentally friendly solutions.
In order to improve supply chain sustainability and efficiency, Aramco, one of the largest integrated energy and chemical companies in the world, and international contract logistics provider DHL Supply Chain have announced the signing of a shareholders' agreement for a new procurement and logistics hub in Saudi Arabia. It would be the first such center in the area, serving clients in the industrial, energy, chemical, and petrochemical industries.
In order to serve businesses in the industrial, energy, chemical, and petrochemical industries, the joint venture plans to start operating in 2025. It will offer dependable, end-to-end integrated procurement and supply chain services. The combined business would concentrate initially on Saudi Arabia, with plans to grow throughout the MENA region.
The joint venture is anticipated to bring value in satisfying customers' supply chain purchasing, warehousing and inventory management, transportation, and reverse logistics demands thanks to Aramco's leading energy and industrial supply chain ecosystem and DHL's world-class logistics capabilities.
The goal of the joint venture is to implement more environmentally friendly supply chain, transportation, and warehousing solutions as well as industry best practices in procurement and supply chain management.
"This partnership brings together two industry leaders, each with a long and storied history," stated Amin H. Nasser, President and CEO of Aramco. We want to make it possible for the Procurement and Logistics Hub joint venture to act as a one-stop hub for customers' supply chain needs by fusing Aramco's superior energy, chemicals, and industrial supply chain ecosystem with DHL's top-notch shipping and logistics capabilities. In addition to helping our two businesses achieve their financial objectives, we believe it will hasten regional and Saudi Arabian growth.
"We are incredibly excited to announce the signing of this agreement with Aramco," said Oscar de Bok, CEO of DHL Supply Chain. DHL wants to use it to broaden our industrial footprint while advancing our commercial operations and logistics networks across Saudi Arabia and the MENA region. By collaborating with Aramco, we hope to give local and multinational companies operating in these industries access to a strong global logistics network, boosting sustainable business practices and encouraging economic growth.
The new venture is anticipated to enable organizations to cut costs, increase productivity, and embrace digitalization through cutting-edge technologies. It is the result of years of collaboration between the two businesses and promises to revolutionize inventory and logistics management, boost sales, generate jobs, and support economic diversification in Saudi Arabia and the MENA region.
Regulational clearances and other usual closing requirements must be met before the joint venture can be formed.
