Essar Projects and MMG sign deal to develop Saudi Arabian city

construction-Martyn E. Jones sxc.huThis collaboration will be positioned to cater to all construction aspects of the development of Jazan, thereby creating significant employment opportunities for locals, MMG said. (Image source: Martyn E Jones/sxc.hu)EPC firm Essar Projects has entered into a deal with construction service providers Mohammed Al-Mojil Group (MMG) for project developments at Jazan in Saudi Arabia

The deal includes work on Saudi Aramco’s 400,000 bpd Jazan Refinery, which is expected to process per day up to 75,000 barrel gasoline, 250,000 barrel low-sulphur diesel and 80,000 barrel vacuum distillation material, once operational in 2016.

Headquartered in Dubai, Essar projects has a large engineering and procurement division as well as operating extensive fabrication facilities and a large construction equipment bank operated from an Indian base, Indian news agency PTI reported.

According to MMG, the deal aligns with its restructuring plan and its new business model, focusing on core business units of skilled workforce, scaffolding, steel fabrication, camping/catering plus other services required by the construction industry.

MMG has been looking to mobilise and invest in large quantities of construction equipment and facilities in Jazan area for the long term.

The collaboration will be positioned to cater to all construction aspects of the development of Jazan, thereby creating significant employment opportunities for locals, the company added.

Stewart Macphail, CEO of MMG, said, “We are excited to be working together with Essar Project to develop this new business which will expand MMG’s footprint in the Kingdom.

"This new venture is a part of MMG’s new strategy to build and grow market leading construction services solutions across Saudi Arabia.”

Alwyn Bowden, CEO of Essar Projects, added that Saudi Arabia is a key market for Essar Projects and this partnership will enable them to provide a value offering to key customers in the country and to actively participate in the development of the Jazan region.

“This collaboration enables us to work flexibly to cater to peak project manpower and resource requirements, thereby servicing our key customers to the fullest,” Bowden said.

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