Three Firms to Build 1 Million-Ton Electrolytic Aluminum Project in Saudi Arabia

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Aluminum Corporation of China Limited (Chalco) (NYSE:ACH) (Beijing), MMC Corporation Berhad (MMC) (Kuala Lumpur, Malaysia) and the Saudi Binladen Group (SBG) (Jeddah, Saudi Arabia) have signed an agreement for a 1 million-ton-per-annum electrolytic aluminum project in Saudi Arabia, according to China's Xinhua News Agency.

The project, located in Saudi Arabia's Jazan Economic City, is designed to be finished in three phases. It will also have a 1,860-megawatt self-sufficient power plant, bringing the total cost up to $4.5 billion. Construction dates have not been disclosed. Chalco will hold a 40% stake in the aluminum factory and a 20% stake in the power plant. According to Xinhua, Chalco will apply its own techniques -- 350kA electrolytic aluminum production and related carbon-product skills -- in the factory, and give priority to Chinese-made devices and techniques when choosing equipment for the power plant.

The three groups had signed a memorandum of understanding in 2007 and have received approval from Saudi Arabia's government.

MMC is Malaysia's fourth largest company, specializing in mining, power and infrastructure, and SBG is Saudi Arabia's largest construction company, Xinhua stated. As the world's third-largest alumina producer and fourth-largest electrolytic aluminum producer, Chalco has been developing its overseas strategy in recent years.

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