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GE
will cooperate with the government's Saudi Arabian Industrial
Investments Co (SAIIC) to develop joint ventures that boost
Saudi industrial capacity, chief executive Jeffrey Immelt said
in a statement during a visit to the kingdom.
SAIIC was established in 2014 with capital of 2 billion riyals
($533 million) as a venture between some of the country's most
powerful institutions: the Public Investment Fund (PIF),
national oil firm Saudi Aramco and government-controlled Saudi
Basic Industries Corp <2010.SE>.
Under reforms announced by Deputy Crown Prince Mohammed bin
Salman last month, the PIF is to be developed into a $2 trillion
sovereign fund that creates jobs and jump-starts new industries
with strategic investments that reduce Saudi Arabia's reliance
on oil exports.
Immelt said GE was working on several new projects in Saudi
Arabia as part of the reform drive, including a $400 million
forging and casting venture with Aramco that would supply
materials to the marine and energy industries. The facility will
be operating by 2020, creating over 2,000 jobs, he said.
GE is also developing a maintenance facility for military
aviation engines and a manufacturing facility for light-emitting
diode (LED) lighting products, as well as training,
biotechnology and radiology operations, he added.
The projects will help increase the number of Saudi suppliers to
GE to 300 from 150, as the company aims eventually to export
more than $100 million of products and services annually from
Saudi Arabia, it said.
(Reporting by Andrew Torchia; editing by Adrian Croft)
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