Saudi Arabia, together with China, has decided to build a tin and non-tin steel production plant with an annual capacity of 400,000 tons in Ras Al-Khair Industrial City. Scheduled to be operational in 2027, the plant is expected to make a significant contribution to the localization of the region's industry and increase its export capacity.
The plant, which will be established within the scope of the agreement signed between Saudi Arabia's Al-Watania for Industries (WFI) and China's Donghexin Group (DHX Group), is the first integrated production facility in this field in the Middle East. The investment aims to localize the supply chain and strengthen industrial independence, especially in the metal packaging sector.
The project, which SteelRadar had previously reported at the memorandum of understanding stage, became official after the parties reached a final investment decision. With the signatures signed, the process entered the implementation phase.
At the signing ceremony held with the participation of Saudi Arabia's Minister of Industry and Mineral Resources Bandar Alkhorayef, Vice-Minister for Mining Affairs Khalid Al-Mudaifer, DHX Group Chairman Li Dong and WFI Chairman Mosaed Al-Ohali, it was emphasized that the cooperation will contribute to the regional industrialization vision.
Li Dong, Chairman of DHX Group, stated that the partnership is part of their goal of vertical integration along the value chain in the metal packaging industry. "We aim to make a long-term contribution to the Kingdom's industrial security by building a technologically advanced production facility. This initiative is a strategic step in localizing know-how and increasing our export capacity," he stated.
Noting that the facility is designed according to sustainability principles and will be ready for the use of low-emission green energy, Dong said that the project will create a production ecosystem that will appeal not only to the local market but also to regional markets.
Abdulrahman Al-Juaid, CEO of WFI, stated that the investment will increase domestic production rates and position Saudi Arabia as a critical exporter of tin and non-tin steel.
The new plant is also expected to reduce dependence on raw material imports and support Saudi Arabia's vision of becoming a manufacturing hub.
Comments
No comment yet.