Arab News
Arab news, Tue, May 20, 2025 | Dhu al-Qadah 22, 1446
Saudi Arabia, China’s DHX Group to build first tinplate plant in Ras Al-Khair
Saudi Arabia:
Saudi Arabia is set to localize tinplate
and tin-free steel production through a partnership with China, establishing the
region’s first facility of its kind with an annual capacity of 400,000 tonnes.
Al-Watania for Industries and China’s Donghexin
Group, or DHX Group, have signed an agreement to build the plant in Ras Al-Khair
Industrial City on the Kingdom’s eastern seaboard. The plant is scheduled to
start commercial operations by mid-2027.
The initiative represents an achievement in Saudi Arabia’s efforts to localize
the supply chain for the packaging industry. It aims to satisfy growing domestic
demand for tinplate and tin-free steel — critical materials that underpin a wide
range of sectors, including food and beverage, paints, oils, and chemicals.
A memorandum of understanding to establish the
facility was first signed on Jan. 15 during the fourth edition of the Future
Minerals Forum, according to a statement from WFI issued that day, but now a
full partnership has been agreed.
Saudi Minister of Industry and Mineral Resources
Bandar Alkhorayef witnessed the signing ceremony, which was also attended by
Vice Minister for Mining Affairs Khalid Al-Mudaifer, DHX Group Chairman Li Dong,
and Al-Watania for Industries Chairman Mosaed Al-Ohali.
In a press statement, Al-Ohali said: “This
partnership marks a strategic step toward achieving one of our key expansion
goals — vertical integration across the value chain of the metal packaging
sector.”
He added: “Establishing a technologically advanced
tinplate manufacturing plant is a long-term investment in Saudi Arabia’s
industrial security and reflects our deep commitment to localizing industrial
knowledge, meeting domestic demand, and enhancing our export capabilities.”
According to the Saudi Press Agency, the project
is expected to generate over 500 direct jobs and will employ environmentally
friendly technologies. Half of its output will be designated for domestic
consumption, while the remaining will be exported.
The facility is also seen as a key enabler for
Saudi Arabia to position itself as a manufacturing hub and reduce dependency on
imported raw materials.
DHX Group’s Dong said the venture is a
model for global collaboration. “We are confident that our extensive experience
of over two decades in this field will contribute to building a world-class
metal manufacturing ecosystem that begins in the Kingdom and expands into
regional markets,” he said.
“The plant is designed with sustainability in mind
and is fully prepared for a future shift to low-emission green electricity,
reinforcing our shared commitment to the environment,” Dong added.
Abdulrahman Al-Juaid, CEO of WFI, said the
project represents a major step toward increasing local content and positioning
Saudi Arabia as an exporter of critical tinplate.
“The partnership with Donghexin Group will
contribute to the transfer of advanced manufacturing technologies and the
training of national talent, enhancing Saudi Arabia’s readiness to become a
leading regional industrial hub,” he added.