International Maritime Industries (IMI), the largest integrated full-service maritime yard in the Middle East and North Africa (MENA) region, has entered into a long-term agreement with JSA Loadmaster, a joint venture company, to boost its efforts to localize its supply chain in Saudi Arabia.
The agreement will enable JSA Loadmaster, a joint venture between Jackup Structures Alliance (JSA) and Loadmaster Industries, to localize its rig product manufacturing, boost its lifecycle and maintenance support in the Kingdom.
With this agreement IMI, JSA Loadmaster is expected to contribute around $200 million to the Saudi economy over the next eight years. The company will produce rig rack and chord, as well as derricks and other engineered structural products in the kingdom, in line with the highest standards of sustainability and environmental excellence.
IMI, a joint venture between leading industry partners Aramco, Lamprell, Bahri and Hyundai Heavy Industries, will benefit from being able to source products for itself and its clients locally for rig manufacturing, reducing the cost of importing products from abroad.
As part of the agreement, IMI will guarantee the ordering of rack and chord for four rigs, with an extension option of an additional two rigs. The signing marks the establishment of IMI’s first long-term agreement with a supplier and a significant milestone in the company’s efforts to localize its supply chain. The partnership will also provide IMI with the opportunity to learn and align with industry best practices and further improve its rig services, building on its competitive overall market position.
“This agreement with JSA Loadmaster is an important milestone for IMI, marking our first big step towards supply chain localization. As part of IMI’s localization strategy, the agreement lays the foundation for the establishment of local, cost-competitive manufacturing operations where all manufacturing and delivery activities occur in the same place. It will also improve the efficiency, agility, and logistics of the manufacturing process overall and create employment opportunities while adhering to the highest international standards of sustainability and environmental excellence.”
Mr. Jeff Myklebust, CEO for Loadmaster Industries, stated, “JSA Loadmaster will deliver an industry-leading manufacturing and supply solution supporting and partnering with IMI. Our localization plan includes a large percentage of technology and knowledge transfer through our technical and operations team led by Jeremy Guillotte. We will be developing and training Saudi employees to drive and grow the ecosystem required to support the initiatives of this long-term agreement while respecting the culture, safety, and the environment in Saudi Arabia.”
IMI’s localization efforts are focused on the procurement of materials and services used in rig and vessel production, as well as maintenance, repair and overhaul (MRO) practices. The company intends to form more long-term partnerships with suppliers that are committed to localizing the manufacturing of their products in Saudi Arabia.