Aluminium Products Company (ALUPCO), an aluminium extrusion producer in Saudi Arabia, and Asia Aluminum Group (AAG), a leading Hong Kong aluminium extrusion manufacturer with a production base in Mainland China, have signed a Master Framework Agreement to build the largest integrated downstream aluminium industrial base in Saudi Arabia.

 

The partnership, signed in Hong Kong, will form three joint ventures, including AAG member companies AluHouse and MacMetal. With a total investment of up to $500 million, the companies will build the largest integrated downstream aluminium industrial base in Saudi Arabia, focusing on aluminium extrusion, modular housing, and solar panel frames.

 

Khaled Abdel-Moneim, CEO of ALUPCO (front right in the picture above), and Eric Kwong, Vice Chairman of AAG & Chairman of AluHouse (front left), signed the agreement. Witness guests (back, right to left) included Abdellateif Al Mubarak, Chairman of ALUPCO; Mahmoud Al Asmari, Director Minerals & Metals at the National Industrial Development Center (NIDC) of Saudi Arabia; Nicholas Ho Lik Chi, Commissioner for Belt & Road of the Hong Kong SAR; Chairman Kwong, Chairman of AAG; and Henry Kwong, Senior Vice President of AAG.

 

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 & Metals at the National Industrial Development Center (NIDC) of Saudi Arabia, along with key industry leaders, witnessed the signing in Hong Kong.

 

<figure><img src="https://taimages.tradearabia.com/source/2025/10/01/alupcohk1.jpg" alt="alupcohk1.jpg" width="100%" style="max-width: 680px;margin: 0 auto;padding:10px 0px;"><figcaption style="text-align:center;">Officials celebrate the agreement signing</figcaption></figure>

 

Mahmoud Al-Asmari 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.

 

"NIDC is 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," he said.

 

Khaled Abdel-Moneim 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.

 

"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."

 

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 Saudi Arabia, replicating the successful model of world-class industrial base development we pioneered in China over 30 years ago. This new platform will unlock significant growth opportunities across the Middle East, North Africa, 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 aluminum downstream industry in the region."

 

The new industrial base in Riyadh will cover 1.5 million sq m (15 hectares) and will be developed in two phases. Phase one, to be completed in 30 months, will create over 1,800 jobs and significantly boost the local economy.

 

Phase one production capacity includes:

* Aluminium extrusion: with a total production capacity projected to reach 200,000 tons, divided into two phases : phase 1 with 100,000 tons and phase 2 with 100,000 tons. The project includes building the most advanced extrusion factory, equipped with smart robotic automation equipment, making it the largest and most advanced facility of its kind in the region.

* Solar panel frames: 30 million solar panel frames per year, enough to support 25 GW of new solar projects

* Modular construction: 30,000 residential modules per year, introducing innovative building solutions to the area, including the Modular Integrated Construction (MiC) systems. -TradeArabia News Service