In a strategic move that reinforces Saudi Arabia’s position as a global industrial hub, the Public Investment Fund (PIF) and Red Sea Aluminum Holding Company (RSAH) signed the preliminary terms of a partnership to develop an advanced, integrated aluminum products complex in Yanbu Industrial City. This partnership with RSAH, a joint venture comprising a consortium of major international companies including Innovation Global Industries, Innovation New Materials, and Shandong Innovation Group, represents a significant leap forward for the mining and downstream industries in the Kingdom.
Strengthening the pillars of Vision 2030 in the mining sector
This announcement, unveiled during the International Mining Conference in Riyadh, aligns perfectly with the goals of Saudi Vision 2030, which positions the mining sector as the third pillar of national industry, alongside oil, gas, and petrochemicals. Through this initiative, the Public Investment Fund aims to localize knowledge and attract foreign direct investment, thereby contributing to the diversification of the national economy and reducing reliance on imports of essential raw materials for advanced industries.
Red Sea Aluminum Complex: Advanced Technologies in Yanbu
Under this partnership, the Red Sea Aluminum Industrial Company will be established, headquartered in Yanbu. Yanbu boasts a robust industrial infrastructure and a strategic location on the Red Sea coast, facilitating export operations and logistics. The new complex will focus on localizing advanced smelting technologies and establishing one of the largest continuous casting aluminum plants in the Middle East, producing a wide range of high-value-added products.
Integration with strategic industries and electric vehicles
This partnership is particularly significant given the Public Investment Fund's (PIF) investment portfolio. Aluminum is a vital metal in many of the industries the Fund focuses on, most notably the electric vehicle industry (as seen in PIF's investments in Lucid and Seer), where aluminum is essential for reducing vehicle weight and increasing efficiency. The project also complements the renewable energy, utilities, electronics, and construction sectors, creating robust local supply chains that support mega-projects in the Kingdom.
Official statements regarding the partnership
Commenting on this event, Dr. Mohammed Al-Dawood, Director of the Industries and Mining Sector at the Middle East and North Africa Investments Department of the Public Investment Fund, stated: “The Public Investment Fund continues to achieve its objectives by developing globally competitive industrial ecosystems that drive economic transformation and diversification in the Kingdom. The proposed new project aims to provide aluminum products to meet global and local demand.”.
For his part, Tom Northover, CEO of Red Sea Aluminum Holding Company, emphasized the project's global ambitions, stating, "Red Sea Aluminum Industrial Company aims to become a global leader in aluminum products, a cornerstone of the Kingdom's industrial and energy ecosystem, and a provider of products that meet the needs of international customers." He added, expressing his delight at partnering with the Public Investment Fund (PIF) to leverage its investment expertise, that the investment in Yanbu reflects the Kingdom's strength as a hub for advanced industries.
Developing human capabilities and transferring knowledge
The partnership's objectives extend beyond economic and industrial aspects to include human capital development. Both parties are committed to accelerating the development of the local workforce through specialized technical training programs and skills development initiatives. These initiatives aim to transfer global best practices and technical expertise to Saudi talent, ensuring the sector's sustainability and growth driven by national talent.
It should be noted that the activation of these preliminary provisions is subject to the completion of the final documents and agreements between the partners, in addition to obtaining the necessary official approvals and authorizations from the relevant authorities.
