The Saudi company will take the majority stake in the JV named Arkad-ABB, as per a report in Bloomberg. Arkad-ABB will operate from Milan, Italy at ABB’s EPC business headquarters.
The percentage of ownership in the JV has not been disclosed by the partners.
For Arkad, the new business would provide it opportunities beyond Saudi Arabia, particularly in North Africa including Algeria and also in the rest of the Gulf region like Kuwait and the UAE.
Arkad managing director Hani Abdelhadi was quoted by the publication as saying: “It has been our goal since the beginning to become an international company.
“Through an acquisition, it’s easier market access than trying to go and set up in each country.”
ABB will be transferring its oil and gas EPC unit into the JV as part of a strategic realignment of its global operations in response to changing market dynamics.
The JV is anticipated to be finalized in early December and slated to begin operations from January 2018, Reuters reported.
Following its realignment, ABB, apart from the JV, will cater to the global oil and gas sector through its automation, electrification and digitalization solutions.
ABB’s partner Arkad is also the contractor of Saudi Aramco’s nationwide pipeline network in Saudi Arabia. The pipeline network is to cover over 1,100km and will be laid between the Eastern Province and Rabigh, which lies on the western coast of Saudi Arabia, along the Red Sea.
Arkad, which is headquartered in Al Khobar, was renamed from Saudi KAD in late February.
