ASMO, the joint venture between Aramco and DHL Supply Chain, has launched procurement services covering drilling, chemicals and project materials for its anchor customer, Aramco, marking a strategic expansion into high-value categories supporting the energy giant’s upstream operations and projects.

The development expands ASMO’s procurement responsibilities beyond general supplies and maintenance, repair and operations (MRO) materials.

The company now manages more than 470 procurement agreements, supported by a supplier network of over 330 companies and a combined portfolio exceeding 65,000 unique material items.

Sulaiman Al Rubaian, Aramco Senior Vice President of Procurement & Supply Chain Management, said: “For Aramco, this progress reflects the growing confidence in ASMO’s ability to take on broader and more complex procurement responsibilities,” said Sulaiman M. Al Rubaian, Aramco Senior Vice President of Procurement & Supply Chain Management. “This shows our shared commitment to building a platform that delivers long-term value — scalable, efficient, and aligned with our ambition to create a world-class supply chain for the Kingdom and beyond.”

Nico Schuetz, CEO of ASMO, said: “This phase reflects the next stage in ASMO’s growth, moving into more complex procurement categories that are central to Upstream operations,” said Nico Schuetz, CEO of ASMO. “By building a model that allows for demand aggregation and creating economies of scale, ASMO aims to deliver value for Aramco and support future customers across the Kingdom’s energy and industrial sectors.”

ASMO plans to continue expanding its procurement portfolio into additional high-value industrial materials throughout 2026 and 2027.

The expansion is intended to strengthen demand aggregation, improve cost efficiency, enhance supply chain visibility and support more effective procurement decisions.

By 2030, ASMO is projected to manage more than $8 billion in annual procurement activities, supported by a standardised procurement model and an integrated supply chain network comprising six strategically located hubs across Saudi Arabia.

The planned infrastructure is expected to support growth across the Kingdom’s energy, chemicals and industrial sectors, as well as the wider Middle East and North Africa (MENA) region, while contributing to Saudi Vision 2030. -TradeArabia News Service