24.03.2023 • NewsDHLLogisticschemicals

Aramco and DHL Plan Saudi Logistics Hub

Saudi Aramco and DHL Supply Chain have signed an agreement to set up a new procurement and logistics hub in Saudi Arabia. The facility would be the first in the region to cater to customers in the industrial, energy, chemical and petrochemical sectors.

© Aramco
© Aramco

“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,” said Aramco president and CEO Amin Nasser.

The facility is expected to be operational in 2025, providing end-to-end integrated procurement and supply chain services, such as purchasing, warehouse and inventory management, transportation and reverse logistics. It will initially focus on Saudi Arabia, but aims to eventually expand across the Middle East and North Africa.

The companies, which have worked together over several years, said they expect their joint venture to enable businesses to reduce costs, maximize efficiency and harness digitalization. They did not disclose the size of their stakes in the proposed venture, which is subject to regulatory approvals and other customary closing conditions.

Author: Elaine Burridge, Freelance Journalist

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