Aluminium Products Company (ALUPCO), a key player in aluminium extrusion in Saudi Arabia, has partnered with Asia Aluminum Group (AAG), a top aluminium extrusion manufacturer based in Hong Kong with operations in Mainland China. This collaboration is set to create the largest integrated downstream aluminium industrial hub in Saudi Arabia.
The partnership signed in Hong Kong is set to launch three joint ventures, bringing together AAG affiliates AluHouse and MacMetal. With a hefty investment of up to USD 500 million, this collaboration aims to develop Saudi Arabia's largest integrated downstream aluminium industrial hub, focusing on aluminium extrusion, modular housing and the production of solar panel frames.
The agreement was officially signed by Khaled Abdel-Moneim, the CEO of ALUPCO, alongside Eric Kwong, who serves as the Vice Chairman of AAG and the Chairman of AluHouse (front left). The ceremony was also attended by several notable figures, including Abdellateif Al Mubarak, the Chairman of ALUPCO, Mahmoud Al Asmari, the Director of Minerals & Metals at Saudi Arabia's National Industrial Development Centre (NIDC), Nicholas Ho Lik Chi, the Commissioner for Belt & Road of the Hong Kong SAR, AAG Chairman Kwong and Henry Kwong, the Senior Vice President of AAG.
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Senior officials from the Hong Kong SAR and the Saudi Arabian governments, including Ir Ricky Lau Chun-kit JP, who serves as the Permanent Secretary for Development (Works); Nicholas Ho Lik-chi, the Commissioner for Belt and Road of HKSAR and Mahmoud Al-Asmari, the Director of Minerals & Metals at Saudi Arabia's National Industrial Development Center (NIDC), came together with prominent industry leaders to witness the signing ceremony in Hong Kong.
Mahmoud Al-Asmari said, "This partnership marks a milestone in advancing the Kingdom's aluminium downstream targets. 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."
He further adds, "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. This alliance reflects the Kingdom's ability to attract world-class expertise, integrate advanced technologies, and localise high-value supply chains. Beyond industrial growth, the partnership will generate quality jobs, accelerate renewable energy adoption, and further solidify Saudi Arabia's position as a leader in the global aluminium industry."
On the other hand, Khaled Abdel-Moneim said, "This partnership marks a new chapter in Saudi Arabia's industrial advancement. 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."
He further added, "We extend our sincere appreciation for the support provided by the National Industrial Development Centre (NIDC). Their efforts represent a tangible implementation of Vision 2030, the ambitious national transformation agenda spearheaded by His Royal Highness Crown Prince Mohammed bin Salman. This vision aims to diversify the Saudi economy by developing new industrial sectors, a goal in which this investment is poised to play an active and significant role."
Eric Kwong, Vice Chairman of AAG, Chairman of AluHouse, stated, "We are pleased to partner with ALUPCO, a company that shares our commitment to innovation and market leadership. Together, we will create the largest downstream aluminium industrial base in Saudi Arabia, replicating the successful model of world-class industrial base development we pioneered in China over 30 years ago. 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."
The new industrial base in Riyadh is set to cover an impressive 1.5 million square meters (approx. 15 hectares) and will be developed in two phases. The first phase is expected to wrap up in just 30 months and is projected to create over 1,800 jobs, giving a significant boost to the local economy.
To know more about the aluminium extrusion industry, read “The World of Aluminium Extrusions – Industry Forecast to 2032”
The aluminium extrusion segment of the project is gearing up to hit a total production capacity of 200,000 tonnes, split across two phases, 100,000 tonnes each. This facility will boast cutting-edge extrusion technology, complete with advanced robotic automation, making it the largest and most sophisticated plant of its kind in the area.
On the solar panel frame side, the operation is set to churn out 30 million units every year, enough to support 25 GW of new solar initiatives. At the same time, the modular construction segment aims to deliver 30,000 residential modules annually, introducing innovative building solutions to the region through Modular Integrated Construction (MiC) systems.
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