The partnership will enhance the company’s manufacturing capabilities and deliver high-quality solutions that support sustainable infrastructure and renewable energy projects in the Kingdom, says Khaled Abdel-Moneim

Aluminium Products Company (ALUPCO), Saudi Arabia’s largest aluminium extrusion producer, has signed an agreement with Asia Aluminum Group (AAG), a leading aluminium extrusion manufacturer from Hong Kong, to invest $500 million in building the largest integrated downstream aluminium industrial base in the Kingdom.

The partnership, which includes AAG member companies AluHouse and MacMetal, will launch three new joint ventures, focusing on aluminium extrusion, modular housing, and solar panel frames.

The landmark partnership is designed to meet the growing demand for aluminium products in the Middle East.

The project will adopt advanced and sustainable technologies, exemplifying the goals of China’s Belt and Road Initiative (BRI) to strengthen trade links, foster economic diversification, and advance green technologies across the regions.

It is in line with Saudi Vision 2030 and its focus on downstream manufacturing, including the transformation of raw aluminium into finished, market-ready products and integrated solutions, as well as cross-regional connectivity and technology transfer.

Senior representatives from the governments of Hong Kong SAR and Saudi Arabia, including Ir Ricky Lau Chun-kit JP, Permanent Secretary for Development (Works); Nicholas Ho Lik-chi, Commissioner for Belt and Road of HKSAR; and Mahmoud Al-Asmari, Director of Minerals and Metals at the National Industrial Development Center (NIDC) of Saudi Arabia, alongside key industry leaders, witnessed the signing ceremony in Hong Kong.

Eric Kwong (left, seated) and Khaled Abdel-Moneim (right, seated) sign the master framework agreement

Eric Kwong, Vice Chairman of AAG, Chairman of AluHouse, said: '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 the Kingdom of Saudi Arabia, replicating the successful model of world-class industrial base development we pioneered in China more than 30 years ago.

'This new platform will unlock significant growth opportunities across the Middle East, North Africa (Mena), 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.'

CAPITALISING ON MUTUAL STRENGTHS

The partnership capitalises on AAG’s established business model within China’s Greater Bay Area (GBA), offering a validated value proposition that supports scalable replication and global growth.

It brings AAG’s comprehensive industrial operational expertise, technical know-how and industry-leading technology to the new factory in the Kingdom.

AluHouse’s innovative success in developing MiC applications for the construction sector, combined with ALUPCO’s in-depth market insight, operational excellence, and strong regional presence, further strengthen this alliance.

Facilitated by NIDC, the strategic alliance will support and accelerate the Kingdom’s ambitious industrial targets, through phased investments, transfer of technical know-how, and progressive localisation, while advancing localised supply chains and strengthening downstream value chains in line with Vision 2030.

THE JOINT VENTURES

The new industrial base, located in KSA’s capital city of Riyadh, will span a planned site area of 1,500,000 sq m and will be developed in two phases.

Eric Kwong, second from right, Khaled Abdel-Moneim, third from right, Mahmoud Al Asmari, fourth from right, along with other officials

Upon completion of the first phase within 30 months, the facility is expected to create more than 1,800 new jobs and contribute significantly to the local economy.

This initial phase will establish an aluminium downstream production capacity set to become the largest in the Middle East for the following product lines:

• Aluminium extrusion production: With a total production capacity projected to reach 200,000 tonnes, this joint venture will significantly enhance the local supply chain by ramping up aluminium profile manufacturing. It will be divided into two phases: Phase 1 with 100,000 tonnes, and phase 2 with 100,000 tonnes. The project includes building the most advanced extrusion factory equipped with smart robotic automation equipment. This venture will provide a vital, locally sourced supply of premium aluminium materials to meet the Kingdom’s growing construction demands.

• Modular construction and aluminium bridge solutions: Led by AluHouse and ALUPCO, this venture will utilise advanced MiC techniques. By leveraging off-site factory prefabrication, it will deliver faster, higher-quality, and more eco-friendly construction solutions for housing and infrastructure projects. The projected annual production capacity is 30,000 residential modules, directly supporting Saudi Arabia’s green urban development goals.

• Solar panel frame manufacturing: Targeting the renewable energy sector, this joint venture will establish an annual production capacity of up to 30 million solar panel frames, with the capacity to support 25 GW of PV projects. The venture aims to meet both domestic and export market needs, reinforcing Saudi Arabia’s position as a regional and global hub for renewable materials manufacturing.

A new management team will be formed with representation from both AAG and ALUPCO to oversee the ventures.

Commenting on the partnership, Khaled Abdel-Moneim, CEO of ALUPCO, 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 added: 'We extend our sincere appreciation for the support provided by the National Industrial Development Center (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.'

Looking ahead, AAG plans to integrate its mature supply chain ecosystem from China into the new base to establish a world-class aluminium industry cluster in the region.

Mahmoud Al-Asmari, Director of Metals at the National Industrial Development Center (NIDC) of Saudi Arabia, 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 said NIDC was 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,' Al-Asmari said.

ALUPCO will showcase the modular building solutions offered by ALUHOUSE at the Cityscape Global expo being held in Riyadh from November 17 to 20.