Aramco declared that it will enhance supply chain efficiency and sustainability by signing a joint venture (JV) agreement with DHL Supply Chain, in order to create, the region’s first hub catering to customers in the industrial, energy, chemical, and petrochemical sectors.
Aramco’s announcement is intended to be operational in 2025 and provide reliable end-to-end integrated procurement and supply chain services for companies across the industrial, energy, chemical, and petrochemical sectors. The joint venture would initially focus on Saudi Arabia, with the potential to expand across 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.
Amin H. Nasser, Aramco President & CEO, said: “This partnership brings together two industry leaders, each with long and storied histories. By combining the exceptional energy, chemicals and industrial supply chain ecosystem of Aramco with the world-class shipping and logistics expertise of DHL, we aim to enable the Procurement and Logistics Hub joint venture to serve as a one-stop hub for customers’ supply chain needs. We anticipate that it will not only advance the economic goals of our two companies but also accelerate growth across Saudi Arabia and the MENA region.”
Oscar de Bok, DHL Supply Chain CEO, said: “We are extremely excited to announce the signing of this agreement with Aramco. Through it, DHL intends to foster its business operations and logistics networks throughout Saudi Arabia and the MENA region while expanding our industrial footprint. By working in partnership with Aramco, we aim to provide regional and multinational businesses from these sectors access to a robust international logistics network, fostering positive economic growth while promoting sustainable activities.”