(MENAFN- Kuwait News Agency (KUNA)) RIYADH, March 20 (KUNA) - Aramco and the international contract logistics provider DHL Supply Chain have announced signing an agreement for establishing a new Procurement and Logistics Hub in Saudi Arabia, to enhance supply chain efficiency and sustainability.
The hub, expected to be operational in 2025, will be the first in the region and aims to provide reliable end-to-end integrated procurement and supply chain services for companies across the industrial, energy, chemical and petrochemical sectors, said Aramco in a statement, noting that the joint venture would initially focus on Saudi Arabia, with aspirations to expand across the MENA region.
Aramco's preeminent energy and industrial supply chain ecosystem and DHL's world-class logistics expertise are expected to enable the joint venture to add value in meeting customers' supply chain purchasing, warehouse and inventory management, transportation and reverse logistics needs, added Aramco.
Through state-of-the-art technologies, the joint venture is expected to allow businesses to reduce costs maximize efficiency and harness digitalization, and aims to transform inventory and logistics management, expand business, create jobs and enable economic diversification in Saudi Arabia and the MENA region.
Aramco President and CEO Amin Nasser that by signing this agreement, they will establish a company based on an innovative business model through which an e-market platform is created, to serve companies operating in the energy and chemicals sector in supplying their needs of equipment, industrial materials and spare parts, indicating that the project's first phase will be focused in the Kingdom with hopes of expanding to MENA region.
For his part, DHL Supply Chain CEO Oscar de Bok said that through the agreement, DHL intends to foster its business operations and logistics networks throughout Saudi Arabia and the MENA region while expanding its industrial footprint, noting that by partnering with Aramco aiming to provide regional and multinational businesses from these sectors access to a robust international logistics network, fostering positive economic growth while promoting sustainable activities. (end)
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