The Public Investment Fund (PIF) and Red Sea Aluminium Holdings (RSAH), a joint venture between Innovation Global Industries, Innovation New Materials, and Shandong Innovation Group, have announced an agreement on initial terms to partner in developing an advanced, single integrated downstream aluminum complex in Yanbu, western Saudi Arabia. Through this collaboration, Red Sea Aluminium Industrial (RSAI), a facility owned by RSAH, will introduce advanced smelting technologies to Saudi Arabia and establish one of the Middle East’s largest continuous casting facilities.
The complex will produce a broad range of high-value downstream aluminum products, reinforcing the country’s position in the global aluminum market. The announcement was made at the Future Minerals Forum in Riyadh and aligns with PIF’s strategy to build regional and international partnerships, attract investments, maximize returns, diversify the local economy, localize knowledge, and unlock the potential of strategic sectors.
Dr. Muhammad AlDawood, Head of the Industrials and Mining Sector at PIF, highlighted that the fund continues to deliver on its mandate by developing globally competitive industrial ecosystems that support Saudi Arabia’s economic transformation and diversification. He emphasized that RSAI would secure the supply of downstream aluminum products to meet both global and local demand.
Tom Northover, Executive Board Director at RSAH, said that RSAI aims to become a global leader in downstream aluminum, fully integrated within Saudi Arabia’s industrial and energy ecosystem, and designed from the outset to meet the needs of international customers. He noted that partnering with PIF allows RSAH to leverage the fund’s extensive investment expertise and scale, reflecting Saudi Arabia’s strength as a global hub for advanced industry.
PIF, recognized as one of the world’s most influential investors, expects Red Sea Aluminium Industrial to complement its other investments in strategic sectors such as automotive, power and utilities, electronics, and construction. RSAH’s shareholders are among the world’s largest producers of downstream aluminum products, and the proposed complex will benefit from their technology, proven mega-cluster development model, and the growing demand for aluminum worldwide.
The partnership also aims to accelerate workforce development through technical training programs, skills enhancement initiatives, and exposure to global best practices, supporting the development of local talent in the aluminum sector. The agreement reflects initial terms, and the partners will need to finalize transaction documents, fulfill condition precedents, and obtain all necessary approvals and authorizations before the project proceeds.
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