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Energy and chemicals company Saudi Aramco and South Korean shipbuilding conglomerate Hyundai Heavy Industries (HHI) Group signed a general memorandum of understanding (MoU) on Wednesday to jointly collaborate on business development opportunities in the Kingdom of Saudi Arabia.

The MoU lays the groundwork for the development of a world class maritime yard and the advancement of maritime diesel engine manufacturing in the Kingdom of Saudi Arabia. It also lays out a comprehensive business cooperation framework in areas such as engineering, procurement and construction (EPC), downstream, and the development of a casting and forging facility.

The strategic collaboration discussion was initiated when Saudi Aramco’s Board of Directors visited HHI ‘s Ulsan complex in April 2015.

 “Our two companies are global leaders in our respective industries and the MoU cements a strategic relationship between us, with business flourishing on both sides. The partnership will add greater value to the Kingdom’s economy, boost our localization efforts and help create jobs for Saudi nationals,” said Amin H. Nasser, President and CEO of Saudi Aramco.

 Ki-sun Chung, Senior Vice President of HHI Corporate Planning, added: “The partnership between the two industrial behemoths not only means a great opportunity to enhance Korea’s shipbuilding and EPC businesses, but also extends Hyundai Groups’ contribution to the Kingdom stretching back to the 1970s when it was awarded a contract to develop the Jubail port (King Fahd industrial port) project. This signing is significant as it provides the potential for the creation of another Jubail that creates tremendous growth opportunities for HHI in Saudi Arabia.”