SAUDI-CHINESE JOINT VENTURE TO DEVELOP ALUMINUM INDUSTRIAL HUB IN RIYADH
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Aluminium Products Company (ALUPCO), an aluminum extrusion producer in Saudi Arabia and Asia Aluminum Group (AAG), a Hong Kong aluminum extrusion manufacturer, have signed an agreement to build the largest integrated downstream aluminum industrial base in the Kingdom.
The partnership will form three joint ventures, investing up to $500 million, with a focus on aluminum extrusion, modular housing, and solar panel frames.
Saudi Arabia’s National Industrial Development Center (NIDC) initiated the talks between ALUPCO and AAG.
The partnership will also generate jobs, accelerate the adoption of renewable energy, and further solidify Saudi Arabia’s position in the global aluminum industry.
The new industrial base in Riyadh will span 1.5 million square meters (15 hectares) and be developed in two phases. Phase one, to be completed in 30 months, will create over 1,800 jobs and significantly boost the local economy.
The first phase of the industrial hub will include aluminum extrusion with a total production capacity projected to reach 200,000 tonnes, divided into two phases of 100,000 tonnes each. The project involves building an advanced extrusion factory, equipped with smart robotic automation equipment.
The companies will also produce 30 million solar panel frames annually, supporting 25 GW of new solar projects.
They will also enter the modular construction market, with a capacity to produce 30,000 residential modules per year, and introduce new building solutions, such as Modular Integrated Construction (MiC) systems.
The new downstream aluminum industrial base in Saudi Arabia will unlock significant growth opportunities across the Middle East, North Africa, Europe and the US, said Eric Kwong, Vice Chairman of AAG.
