Osstem Implant, a Korean dental equipment manufacturer, said it may establish a dental medical equipment production facility in Saudi Arabia.

The company announced that it had signed a memorandum of understanding (MoU) with the National Industrial Development Center under the Ministry of Industry and Mineral Resources of Saudi Arabia at the Four Seasons Hotel Seoul on Tuesday.

Under the MoU, Osstem Implant intends to support the construction of a dental medical equipment production facility and distribution infrastructure in Saudi Arabia, as well as consider providing clinical education for local dentists.

The agreement comes after the Saudi Arabian government prioritized Osstem Implant as a business partner to activate the dental industry and proposed a business concept to the company last November.

"As a leading global dental industry player, we hope Osstem Implant will consider investing in Saudi Arabia," an official from the Saudi Minister of Industry and Mineral Resources said. "This business MoU will play a pivotal role in expanding Osstem Implant's market presence in Saudi Arabia."

Osstem Implant CEO Eom Tae-kwan also said, "We will consider establishing a medical equipment production facility in Saudi Arabia as the country is a key export hub for the Gulf countries, offering logistical advantages over exporting from Korea."

If we establish a direct sales organization in Saudi Arabia, the company expects rapid local growth, Eom added.

Eom stressed that the company is also considering establishing a local subsidiary in Saudi Arabia.

"Given the need to move forward rapidly in close collaboration with the Saudi government, the Middle East subsidiary, currently handling indirect sales through a dealer network, is deemed insufficient to manage all operations due to potential overload," Eom said.