Aramco ties with China for industrial manufacturing

Saudi Aramco, the world’s largest oil producer, is exploring opening manufacturing facilities for industrial components and advanced materials in collaboration with a state-run Chinese company.

The Saudi-listed company and China National Building Material Group have signed a five-year agreement for potential collaboration, including establishing manufacturing facilities in the kingdom to produce wind turbine blades, hydrogen storage tanks, lower-carbon building materials and energy storage solutions.

The companies will also look to set up a new centre for training, inspection and accreditation, a joint technology development centre and a laboratory to promote innovation.  

Aramco executive vice president of technical services Wail Al Jaafari said the companies aim to identify “disruptive advances and new business opportunities” and promote further development of manufacturing capabilities within the kingdom. 

• China wins $972m contract for new Saudi solar plant
• PIF in $50bn pact with Chinese financers
• Aramco and Rongsheng move on chem plant expansion

CNBM chairman Zhou Yuxian said the agreement will positively contribute to low-carbon development and support further strategic alignment between China and Saudi Arabia.

In July, Saudi Aramco and the Public Investment Fund, the kingdom’s sovereign fund, doubled their investment in a steel plate joint venture with a Chinese company to $500 million.

Aramco awarded a SAR5.2 billion contract to Chinese state energy major Sinopec in June to expand its domestic natural gas pipeline.

China has been the biggest foreign investor, with $16.8 billion, reflecting Saudi Arabia’s pivot to the East since the “watershed” visit of President Xi Jinping to Riyadh in December 2022.