Saudi Arabia-based Abdul Latif Jameel has signed a memorandum of understanding (MoU) with Japanese company Kosei Aluminium to explore the feasibility of a joint venture that would manufacture aluminium wheels and components in the kingdom.

During a visit by King Salman bin Abdulaziz Al Saud in March 2017, Saudi Arabia and Japan agreed to deepen existing bilateral relations between the two countries and establish a solid strategic partnership, as part of the Saudi-Japan Vision 2030, said a statement.

This agreement, signed in Tokyo, Japan, will now see both companies study the potential of utilising Saudi Arabia’s rich aluminium deposits and competitive energy costs through a joint venture.

This would contribute to the development of the manufacturing industry in Saudi Arabia – a key priority of Saudi Vision 2030.

The joint venture would also explore the potential of exporting the products globally.

Fady Mohammed Abdul Latif Jameel, deputy president and vice chairman, Abdul Latif Jameel International, said: “This agreement has the potential to develop into an exciting joint venture, which would bring manufacturing and skills to Saudi Arabia, while contributing to the country’s domestic automotive industry.”

The signing ceremony was attended by Mohammed Abdul Latif Jameel, chairman and chief executive officer of Abdul Latif Jameel; Fady Mohammed Abdul Latif Jameel, deputy president and vice chairman of Abdul Latif Jameel International; Masato Ohde, director of Kosei Aluminium, Kazuhisa Hosoi of Kosei Alumimium; Yoshifumi Asahina and Chiu Man Raymond Lai of Kosei International Trade And Investment. 

The feasibility study is expected to begin in 2018, and be completed by 2019, it stated. – TradeArabia News Service