ALUPCO, AAG to build Saudi Arabia’s largest downstream aluminium hub with US$500M investment

SAUDI ARABIA – Aluminium Products Company (ALUPCO), the Kingdom’s leading aluminium extrusion producer, has signed a Master Framework Agreement with Hong Kong’s Asia Aluminum Group (AAG) to establish Saudi Arabia’s largest integrated downstream aluminium industrial base.

The agreement, signed in Hong Kong, includes AAG’s subsidiary companies AluHouse and MacMetal, with a total investment of up to US$500 million.

The project will be developed in Riyadh over 1.5 million square meters in two phases, creating more than 1,800 jobs upon completion of phase one.

The new industrial hub will focus on aluminium extrusion, modular housing, and solar panel frame production, sectors seen as critical to advancing Saudi Arabia’s renewable energy and sustainable infrastructure ambitions under Vision 2030.

Phase one is expected to be completed within 30 months, with production capacity reaching 100,000 tonnes of aluminium extrusion annually.

When both phases are operational, the facility’s total capacity will reach 200,000 tonnes, making it the most advanced extrusion plant in the region.

In addition, the plant will manufacture up to 30 million solar panel frames per year, supporting 25 GW of new solar projects, and 30,000 modular housing units annually using Modular Integrated Construction (MiC) systems.

Mahmoud Al-Asmari, Director of Minerals & Metals at the National Industrial Development Center (NIDC), called the project a milestone in Saudi Arabia’s industrial development, “By enabling the creation of the largest integrated downstream aluminium base, we are reinforcing the Kingdom’s role as a global hub for sustainable industry.

“This partnership reflects our ability to attract world-class expertise, integrate advanced technologies, and localise high-value supply chains.”

Khaled Abdel-Moneim, CEO of ALUPCO, described the deal as “a new chapter in Saudi Arabia’s industrial advancement,” highlighting its alignment with Vision 2030.

“Working with AAG, AluHouse, and MacMetal allows us to elevate our capabilities and support projects critical to the Kingdom’s future, from renewable energy to sustainable infrastructure,” he said.

Eric Kwong, Vice Chairman of AAG and Chairman of AluHouse, added that the project replicates successful industrial base models developed in China, “This partnership will unlock significant growth opportunities across the Middle East, North Africa, Europe, and the US, while strengthening the bond between China and Saudi Arabia.”

The project underscores Saudi Arabia’s ambition to diversify its economy by developing downstream industries, creating jobs, and driving sustainability in line with global energy transition goals.

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