International Maritime Industries (IMI), the largest maritime yard in the Mena region, has signed a long-term agreement with JSA Loadmaster to enhance its efforts to localise its supply chain in Saudi Arabia.
The agreement will enable JSA Loadmaster, a joint venture between Jackup Structures Alliance (JSA) and Loadmaster Industries, to localise its rig product manufacturing in Saudi Arabia and boost its lifecycle and maintenance support.
Through the agreement with IMI, JSA Loadmaster is expected to contribute around SR750 million ($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 localise 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.
The long-term agreement was signed by Fathi K Al-Saleem, President and Chief Executive Officer of IMI and Jay Fogal, Managing Director of JSA Loadmaster Arabia and President and CEO of Jackup Structures Alliance, during a ceremony at Dhahran, Saudi Arabia. It was also attended by executives from IMI, JSA Loadmaster, Saudi Aramco and ARO Drilling.
Al-Saleem said: “This agreement with JSA Loadmaster is an important milestone for IMI, marking our first big step towards supply chain localisation. We are proud to partner with a renowned global company like JSA Loadmaster, which is dedicated to supporting IMI’s mandate to contribute to the development of the local maritime industry.
“As part of IMI’s localisation strategy, the agreement lays the foundation for the establishment of a local, cost-competitive manufacturing operation 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.”
Jay Fogal, CEO for Jackup Structures Alliance, stated: “Our team embarked upon this journey with IMI and ARO four years ago with the support of Loadmaster’s Chairman, David Russell. As we developed our understanding that we could add significant value to the IMI initiative, we formed JSA Loadmaster under the leadership of our Middle East VP Shaun Hanton, supporting Saudi Vision 2030. Our Joint Venture combines the strength, know-how, and technical expertise of both Jackup Structures Alliance and Loadmaster Industries.”
Jeff Myklebust, CEO for Loadmaster Industries, stated: “JSA Loadmaster will deliver an industry-leading manufacturing and supply solution supporting and partnering with IMI. Our localisation 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 localisation 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 localising the manufacturing of their products in Saudi Arabia.