Extrusion groups agree $500M Saudi Arabia aluminium investment
Eric Kwong, Vice Chairman of AAG & Chairman of AluHouse (front left) and Khaled Abdel-Moneim, CEO of ALUPCO (front right).
Aluminium Products Company (ALUPCO) and Asia Aluminium Group (AAG) have signed an agreement to build the largest integrated downstream aluminium industrial base in Saudi Arabia.
ALUPCO is an aluminium extrusion producer based in Saudi Arabia and AAG is an aluminium extrusion manufacturer based in Hong Kong and mainland China.
The partnership, signed in Hong Kong, will form three joint ventures, including AAG member companies AluHouse and MacMetal.
With a total investment of up to $500 million, the companies will build the largest integrated downstream aluminium industrial base in Saudi Arabia, focusing on aluminium extrusion, modular housing, and solar panel frames.
The new industrial base in Riyadh will cover 1.5 million square metres (15 hectares) and will 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.
Khaled Abdel-Moneim, CEO of ALUPCO, and Eric Kwong, Vice Chairman of AAG & Chairman of AluHouse, signed the agreement. Witnesses included senior leadership from ALUPCO and AGG, as well as the National Industrial Development Centre (NIDC) of Saudi Arabia, and government officials from Hong Kong and Saudi Arabia.
Mahmoud Al-Asmari, Director of Minerals & Metals at the NIDC, said: “By enabling the creation of the largest integrated downstream aluminium industrial base in Saudi Arabia, we are not only strengthening Saudi Arabia’s downstream aluminium manufacturing capabilities but also reinforcing the Kingdom’s role as a global hub for sustainable industrial development.
“NIDC is proud to have initiated this collaboration by introducing AAG and ALUPCO to one another, fostering a partnership that builds local industrial capabilities and maximises synergies between Saudi manufacturers and leading international partners.”
Mr Abdel-Moneim stated: “Collaborating with AAG, AluHouse, and MacMetal allows us to elevate our manufacturing capabilities and deliver high-quality solutions that support sustainable infrastructure and renewable energy projects critical to the Kingdom’s future.”
Mr Kwong added: “This new platform will unlock significant growth opportunities across the Middle East, North Africa, Europe and the US. This partnership demonstrates the growing bond between China and Saudi Arabia and will be a key driver for the future development of the aluminium downstream industry in the region.”
Production capacity of the facility includes:
- Aluminium extrusion: the total production capacity is projected to reach 200,000 tons, divided into two phases. The project includes building an advanced extrusion factory, equipped with smart robotic automation equipment.
- Solar panel frames: 30 million solar panel frames per year, enough to support 25 GW of new solar projects.
- Modular construction: 30,000 residential modules per year, introducing innovative building solutions to the area, including Modular Integrated Construction (MiC) systems.
