Riyadh, SAUDI ARABIA – May 20, 2017
- New MOU set to advance Saudi Aramco’s strategic initiative to develop a competitive and reliable local supply chain
- Honeywell is committed to supporting Saudi Arabia’s long-term economic diversification efforts
: Honeywell (NYSE:HON
) and Saudi Aramco today announced they have signed a memorandum of understanding (MOU) that advances the In-Kingdom Total Value Add (IKTVA) Program; a program that drives localization of content. As part of the agreement, Honeywell will undertake commercial efforts to assist Saudi Aramco in achieving the goals of the IKTVA Program by 2021.
Under the terms of the MOU, which was signed in Riyadh by Honeywell President and CEO Darius Adamczyk and Saudi Aramco President and CEO Amin H. Nasser, the two companies will jointly explore the potential for new engineering capabilities and systems to be developed at several of Saudi Arabia’s world-leading industrial centers, supporting the IKTVA Program’s objectives of increased investment, economic diversification, job creation, and workforce development within the Kingdom.
In addition to enabling a sustainable energy sector in Saudi Arabia, IKTVA aims to establish a level playing field for suppliers through transparent processes, creation of supplier-focused partnerships, and regular quality assessments.
“Since its launch in 2015, IKTVA has represented a step change in our commitment to local content development that is now required across our domestic and international supply chain,” said Mr. Nasser. “By recognizing the value that our partners like Honeywell offer to our long-term growth and economic diversification plans, we are able to create significant opportunities for companies willing to partner with Saudi Aramco on a long-term, sustainable basis. Our professional relationship with Honeywell spans more than six decades and serves as an example of such a partnership – one based on trust, common goals, and shared commitment to our industries and the future of the Kingdom.”
“Honeywell has a proud history in Saudi Arabia, and our ongoing and committed partnership with Saudi Aramco has been a key enabler of our continuous success in the Kingdom,” said Mr. Adamczyk. “From delivering the latest technologies to Saudi Arabia’s industries, to providing distinct training and professional development opportunities for the local workforce, our ambitions are closely aligned with the long-term development plans of the IKTVA Program and Saudi Vision 2030. This agreement offers a new platform to further enhance this partnership and expand Honeywell’s presence in the Kingdom.”
In addition to its technology portfolio, Honeywell continues to play a major role in the development of Saudi Arabia’s industries and local talent through numerous professional partnerships and training programs. These include a unique collaboration with King Fahd University for Petroleum and Minerals (KFUPM) on a pioneering petrochemicals production project as well as the Honeywell UOP University and Global TECPro initiatives, which are helping transform Saudi Arabia into a knowledge-based economy.
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