Saudi’s Ma’aden Inks Agreement to Supply Aluminium Parts with Domestic Automaker
11 March 2017 by Staff
Riyadh’s Saudi Arabian Mining Company (Ma’aden) announced a partnership last month with the Saudi Arabia National Automotive Manufacturing Company (SANAM) to increase the aluminium content in vehicles made in the Kingdom of Saudi Arabia.
Details were sparse, but the company indicated that the joint venture between it and American aluminium firm Alcoa has already yielded high-quality aluminium products for its worldwide customers. Ma’aden indicated that the plant would be used to produce aluminium parts for automobiles made under the agreement in question.
“Ma’aden and SANAM are united in our goal of increasing the use of aluminium in the automotive industry as an alternative to iron,” Ma’aden’s Vice President of Strategy and Aluminium Khaled S. Alohali said. “Ma’aden operates one of the world’s largest fully integrated aluminium complexes and we are currently supplying Jaguar Land Rover with high quality auto sheet product from our world class rolling mill facility.”
“We are excited about launching a world class factory for the manufacturing of automobiles and automotive parts within the industrial city of Jubail,” said President and CEO of SNAM Dr. Fahd S. Al-Dohish. “We are working now to develop joint ventures with local and international companies in order to attract the expertise required to build integrated, sustainable and high tech automotive manufacturing facilities over a dedicated area in Jubail covering one million square metres. In the next few years, we plan to put Saudi Arabia on the global map of automotive manufacturing, in direct support of the goals identified in Saudi Vision 2030.”
Ma’aden was founded in 1997 in an effort by the Saudi government to more fully develop the kingdom’s non-petroleum mineral resources. The Saudi government continues to own a 50% interest, with the other half traded as stock on the kingdom’s stock market. The firm signed an agreement with Alcoa in 2009 to build an aluminium complex at Ras Al-Zour. The complex includes a 1.8 million metric tons per annum alumina refinery and a 750 thousand metric tons per annum aluminium smelter.