Saudi Arabia, China's DHX Group to build first tinplate plant in Ras Al-Khair

20/05/2025 01:45 AST

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.

Arab News