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Recently, at the "Mining and Future Minerals Forum" held in Riyadh, the capital of Saudi Arabia, Red Sea Aluminum Holdings Co., Ltd., a subsidiary of Innovative Group, and the Public Investment Fund (PIF) of Saudi Arabia jointly announced that they have reached an agreement on key cooperation terms. The two parties will invest in and construct a world-leading integrated downstream aluminum industrial complex in Yanbu, a major industrial port city in western Saudi Arabia. This complex is designed to feature globally advanced technology and a leading scale.This initiative marks a crucial step in Innovative Group's global expansion strategy and serves as a model for China and Saudi Arabia to promote industrial collaboration and integrate their shared visions.
The signing ceremony was jointly witnessed by distinguished guests including Bandar Al-Khorayef, Saudi Minister of Industry and Mineral Resources; Khalid Al-Falih, Saudi Minister of Investment; Yazeed Al-Humied, Vice Governor and Head of MENA Investments at the Public Investment Fund (PIF); Muhammad AlDawood, Head of Industrial and Mining Investments at PIF; Cui Lixin, Chairman of Innovative Group; and Tom Northover, Executive Director of Red Sea Aluminum Holdings Co., Ltd.
Pursuant to the agreement, the project will leverage the advanced aluminum smelting and manufacturing technologies of Red Sea Aluminum Industrial Co., Ltd., a subsidiary of Red Sea Aluminum Holdings. It aims to establish one of the largest-scale aluminum production bases in the Middle East within the Yanbu Industrial City. The complex will focus on the R&D and production of high-value-added downstream aluminum products, fully catering to the high-end demand in Saudi Arabia, the broader Middle East, and global markets, thereby helping to reshape the regional aluminum industry ecosystem.
As the core overseas platform for Innovative Group to actively implement its "Going Global" strategy, the development path of Red Sea Aluminum is highly aligned with China's "Belt and Road Initiative" and Saudi Arabia's "Vision 2030". The Group has made a forward-looking layout in the Yanbu Industrial City — a hub located in the heart of Saudi Arabia's industrial zone, adjacent to the two holy cities of Islam. Boasting superior port and logistics conditions along the Red Sea coast, it provides solid support for the efficient operation of the raw material supply chain and the 辐射 of products to the European, Asian, and African markets. The first phase of Red Sea Aluminum is planned to construct an electrolytic aluminum capacity of 500,000 tons per annum (tpa) along with supporting key facilities.
As a world-leading sovereign wealth fund, the Public Investment Fund (PIF) of Saudi Arabia has been driving the diversification and sustainable development of the Saudi economy since its establishment in 1971. The equity investment from PIF in Red Sea Aluminum not only further enhances its industrial matrix across sectors such as automotive manufacturing, power, electronics, and construction but also substantially promotes the upgrading of Saudi Arabia's relevant industrial chains and the optimization of its employment structure through the introduction of internationally advanced technologies, global management expertise, and systematic local talent development. This partnership injects new impetus into the country's industrial modernization.
Muhammad AlDawood, Head of Industrial and Mining Investments at PIF, stated: "We are committed to building a globally competitive industrial ecosystem to accelerate Saudi Arabia's economic transformation. Our collaboration with Red Sea Aluminum will provide us with a stable and high-quality supply of downstream aluminum products, strongly supporting both local and global market demand. This partnership represents a crucial component of the Fund's strategic advancement."
Tom Northover, Executive Director of Red Sea Aluminum Holdings Co., Ltd., stated: "Red Sea Aluminum aspires to become a global leader in the downstream aluminum industry and to deeply integrate into Saudi Arabia's industrial and energy ecosystem. We are honored to partner with a visionary and powerful entity like the Public Investment Fund (PIF) of Saudi Arabia. Our decision to establish a presence in Yanbu stems from our unwavering confidence in Saudi Arabia's central role in global advanced manufacturing."
The signing of the agreement between the Public Investment Fund (PIF) of Saudi Arabia and Red Sea Aluminum to jointly build a world-leading aluminum industrial complex marks a significant milestone for Innovative Group in its journey to become a "world-class green aluminum industry group." It also serves as a crucial strategic engine propelling the Group toward achieving 200 billion RMB in revenue and entering the Fortune Global 500. Furthermore, this partnership signifies a new phase of synergy between capital and industrial internationalization following the listing of Innovative Industries on the Hong Kong Stock Exchange.
