Saudi sovereign wealth 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 aluminum products, said PIF in a statement.

The signing, which was announced at the Future Minerals Forum held 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, the Head of Industrials and Mining Sector at PIF, said: "PIF continues delivering on its mandate by further developing globally competitive industrial ecosystems that drive Saudi Arabia’s economic transformation and diversification. RSAI would secure the supply of downstream aluminum products to meet global and local demand."

PIF is one of the world’s most impactful investors. Red Sea Aluminium Industrial will 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 aluminum 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 center for advanced industry.”

RSAH’s shareholders are among the world’s largest producers of downstream aluminium products. The proposed complex will leverage their technology and proven mega-cluster development model and will benefit from the growing demand for aluminum.

PIF’s partnership with RSAH also seeks to accelerate workforce development through technical training programs, skills development initiatives, and exposure to global best practices, said the statement.

These initial terms are subject to the partners’ finalising the relevant transaction documents, fulfilling the condition precedents and obtaining all necessary approvals and authorisations, it added.-TradeArabia News Service