General Electric’s joint venture to manufacture gas turbines in Saudi Arabia will start production by the end of the year, the chief executive of its state-backed Saudi partner said on Thursday.

GE and Saudi industrial development company Dussur signed an agreement on Wednesday to set up the one billion riyal ($267 million) joint venture in the eastern city of Dammam. Dussur CEO Rashid Al Shubaili said manufacturing of GE’s H-Class turbines in Saudi Arabia would start before the end of the year with the first turbine to be completed in 2018. The Saudi-made gas turbines would be sold in the country and to international customers, he said in an interview in Dubai.