Saudi sovereign wealth fund Public Investment Fund (PIF) has reached an agreement with Red Sea Aluminium Holdings (RSAH) – a joint venture between leading global aluminum companies Innovation Global Industries, Innovation New Materials and Shandong Innovation Group – to jointly develop an single integrated downstream aluminium complex in Yanbu in western Saudi Arabia.
Through this collaboration, Red Sea Aluminium Industrial (RSAI), a complex owned by RSAH, is introducing advanced smelting technologies to Saudi Arabia and developing one of the Middle East’s largest continuous casting facilities to produce a broad range of high-value downstream aluminium products, said PIF in a statement.
The signing, which took place at the Future Minerals Forum held last month (January) in Riyadh, aligns with PIF’s strategy to build regional and international partnerships and attract investments to maximise returns, diversify the Saudi economy, localise knowledge, and continue to unlock the capabilities of strategic sectors, it stated.
Dr Muhammad AlDawood, Head of Industrials and Mining Sector at PIF, said: “PIF continues delivering on its mandate by further developing globally competitive industrial ecosystems that drive KSA’s economic transformation and diversification. RSAI would secure the supply of downstream aluminum products to meet global and local demand.”
The deal will see Red Sea Aluminium Industrial collaborate with PIF, one of the world’s most impactful investors, to complement other PIF investments in strategic sectors including automotive, power and utilities, electronics and construction.
Tom Northover, RSAH Executive Board Director, said: “RSAI aims to become a global downstream aluminium leader, embedded within Saudi Arabia’s industrial and energy ecosystem and designed from day one to meet the needs of international customers. We are pleased to partner with PIF and leverage its extensive investment knowledge and scale. Our investment in Yanbu reflects the fundamental strength of Saudi Arabia as a global centre for advanced industry.”
RSAH’s shareholders are among the world’s largest producers of downstream aluminium products.