King Salman Energy Park (SPARK) and Dalipal Holdings, a leading manufacturer of pipes and equipment for oil and gas, new-energy and specialized energy applications, have announced the signing of a 25-year land lease agreement for the establishment of a key manufacturing base in Saudi Arabia.
As per the deal, Dalipal International for Industry Company, a wholly owned subsidiary of Dalipal Holdings, will develop the 1,030,916-sq-m 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, it stated.
Unveiling its major Saudi plans, Dalipal Holdings said its Saudi development is expected to involve a total investment of $2.1 billion, with Phase I representing approximately $600 million.
The investment will support advanced manufacturing capabilities for seamless steel pipes including OCTG, drill pipes and hydrogen pipes, he noted.
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, said the statement.
The development is expected to strengthen local manufacturing capacity and contribute to the localization of strategic energy-sector supply chains, it added.
Lauding the deal, SPARK President & CEO Mishal Al Zughaibi, said: "The signing of this 25-year lease marks a defining milestone in Dalipal’s investment journey at SPARK. A $600 million first phase and an overall development ambition of approximately $2.1 billion demonstrate the scale of Dalipal’s commitment to Saudi Arabia and the confidence of leading Chinese industrial companies in the Kingdom’s long-term growth story."
"We are proud to partner with Dalipal in building a world-class manufacturing platform that will strengthen localization, create high-value industrial capabilities and serve energy markets across the region," he stated.
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," he added.-TradeArabia News Service
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