King Salman Energy Park Welcomes US$600 Million Investment From Dalipal Holdings For Major Facility
King Salman Energy Park (SPARK) and Dalipal Holdings Limited announced the signing of a 25-year land lease agreement for a 1,030,916-square-meter site at SPARK, marking a major milestone in Dalipal's plans to establish a high-end energy equipment intelligent manufacturing base in Saudi Arabia.
Under the agreement, Dalipal International for Industry Company, a wholly owned subsidiary of Dalipal Holdings Limited (HKEX: 1921), will develop the site as a major manufacturing platform serving Saudi Arabia, the Middle East and international markets. The agreement represents the transition of the project from strategic planning into a long-term development and execution phase. The Saudi development is expected to involve total investment of approximately US$2.1 billion, with Phase 1 representing approximately US$600 million. The investment will support advanced manufacturing capabilities for seamless steel pipes including OCTG, drill pipes and hydrogen pipes. Strategically located within SPARK, the project will benefit from an integrated industrial ecosystem, infrastructure, utilities and logistics connectivity, as well as proximity to Saudi Arabia's major energy and industrial markets. The development is expected to strengthen local manufacturing capacity and contribute to the localization of strategic energy-sector supply chains.
Meng Fanyong, the Chairman of Dalipal Holdings said:“Saudi Arabia is a strategically important market for Dalipal and a key pillar of our international development strategy. Establishing an advanced manufacturing base at SPARK will allow us to be closer to our customers, optimize regional supply chains and build a long-term platform for growth in the Middle East. We are pleased to move forward with SPARK and look forward to contributing our technology, manufacturing capabilities and international experience to Saudi Arabia's industrial development. We are confident this project will become a benchmark for China-Saudi economic cooperation.”
The project builds on the Letter of Intent signed between Dalipal and SPARK in November 2024 for the development of a seamless steel pipe manufacturing facility exceeding one million square meters. Dalipal has since advanced its Middle East strategy, including the establishment and development of its Saudi subsidiary and preparation of its high-end, green and intelligent manufacturing platform. The investment is aligned with Saudi Vision 2030, including the localization of high-value industries, development of domestic supply chains, attraction of international investment and strengthening Saudi Arabia's position as a global industrial and energy hub.
Tags#Dalipal #energy #Facility #SPARK
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Comments
No comment