Hailiang, Rawas sign US$566M copper plant deal in Saudi Arabia, including 50,000T recycling line

SAUDI ARABIA – China’s Zhejiang Hailiang and Saudi Arabia’s Rawas have signed a US$566 million deal for a copper plant with 150,000 tonnes annual capacity, including 50,000 tonnes of refined recycled copper, serving Middle East, European, and African markets.

The project will be located at Dammam Port Industrial Park and implemented in two phases, with the joint venture structured as 51% owned by Hailiang and 49% by Rawas.

Products will include copper tubes, copper bars, recycled copper refining, and copper foil, leveraging Saudi Arabia’s local copper ore resources, energy cost advantages, and regional policy incentives.

Copper Recycling Embedded in the Design

One-third of the facility’s total output, 50,000 tonnes annually, is dedicated to refined recycled copper, processing scrap material back into specification-grade metal. 

Recycling copper requires up to 85% less energy than primary production from ore, making the recycled copper line both an economic and environmental asset. 

For the packaging industry, copper is essential for printed circuit boards in smart packaging applications, conductive inks, and RFID antennae. 

Recycled copper from this facility could supply Middle Eastern electronics and packaging converters with locally sourced, lower-carbon material, reducing reliance on imported virgin copper.

Strategic Partners and Shareholders

Rawas is a Riyadh-headquartered strategic investment and development company whose founding shareholders include Obeikan Investment Group and Al Khorayef Group. 

Other partners listed include Al Muhaidib Group (AMG) and Mohammed Abunayyan Investment Group (MAIG).

Serving the Packaging and Electronics Value Chains

The 50,000 tonnes of copper foil capacity targets lithium battery and electronics manufacturing, while the copper tubes and busbars serve HVAC, power distribution, and industrial applications. 

For packaging converters, the recycled copper line represents a potential local source for conductive materials used in RFID-enabled labels, smart packaging, and printed electronics.

Currently, most specialty copper products and recycled copper feedstocks in the Middle East are imported; domestic production would shorten supply chains and reduce exposure to shipping delays.

A Global Footprint Expansion

The project creates synergies with Hailiang’s existing overseas plants in Houston, Hungary, Vietnam, Thailand, Indonesia, and Morocco. 

The Saudi facility adds a strategic node in the Gulf, linking Asian and European production hubs while serving the fast-growing Middle Eastern and East African packaging markets.

Construction timelines and specific sites within industrial zones NEOM, Yanbu, or Jubail have not yet been disclosed.

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