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Hailiang, the world’s leading supplier of copper tubes and rods, is partnering with strategic investment firm Rawas National Investment Holding to establish a copper materials processing joint venture in Saudi Arabia, with an investment of $566 million. This move marks an expansion of the Chinese company’s international presence.
The company plans to sign an agreement with Rawas to create the joint venture, which will oversee the investment, construction, and operation of the new copper project, according to a recent stock exchange filing. Hailiang will hold a 51% stake, while Rawas will own the remaining shares. The timing of the deal’s signing has not been disclosed.
The project is set to be built at Dammam Port, the second-largest port in Saudi Arabia. It aims to have an annual processing capacity of 150,000 tonnes of copper, including 30,000 tonnes of copper tubes, 20,000 tonnes of copper busbars, 50,000 tonnes of refined recycled copper, and 50,000 tonnes of copper foil.
This joint venture will utilize Saudi Arabia’s copper ore resources, its competitive energy costs, and favorable policy incentives to tap into the local market and expand into neighboring regions such as the Middle East, Europe, and Africa. Additionally, it will bolster the company’s supply chain stability, boost operational efficiency, create synergies with existing overseas facilities, and strengthen its global industrial strategy.
The project will also benefit from the support of Rawas and its stakeholders within Saudi Arabia, leveraging government, social, and security resources to secure policy backing and safety assurances from local authorities, ensuring a stable operational environment.
The company is actively monitoring potential risks associated with geopolitical tensions, regional conflicts, security issues, and other international developments in the Middle East. It commits to strict compliance with Chinese government guidelines on outbound investments, pursuing project development only when risks are manageable and conditions are favorable.
Hailiang is a major provider of copper foil for lithium-ion batteries, with processing plants located in Houston, Hungary, Vietnam, Thailand, Indonesia, and Morocco.
As of 10:20 a.m. in Shenzhen, shares of the company increased by 1.8%, trading at CNY 15.52 (approximately USD 2.28) per share.
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