China: Zhejiang Hailiang plans $566 mn copper processing JV in Saudi Arabia

• Strategic push into MEA markets leveraging resource and energy advantages
• Project targets Middle East expansion, but execution faces geopolitical risks

China-based copper products manufacturer Zhejiang Hailiang has announced plans to establish a joint venture with Saudi investment firm Rawas to develop a large-scale copper processing facility at Dammam port, Saudi Arabia, with a proposed investment of $566 Mn, as per a recent stock exchange filing.

Capacity Configuration and Product Portfolio

The proposed facility will have a total processing capacity of 150,000 t/yr, encompassing a diversified product mix across downstream copper segments. This includes 30,000 t/yr of copper pipes, 20,000 t/yr of copper bars, 50,000 t/yr of recycled copper, and 50,000 t/yr of copper foil, indicating a strategic focus on both primary and secondary copper value chains.

Equity Structure and Regulatory Clearances

As per the proposed structure, Zhejiang Hailiang will hold a majority stake of 51% in the joint venture, while Rawas will own the remaining 49%. The agreement remains subject to necessary approvals from the Saudi government as well as Hailiang’s shareholders, with final execution contingent on regulatory clearances.

Strategic Intent and Market Positioning

The investment is aligned with Hailiang’s broader strategy to expand its global footprint by leveraging Saudi Arabia’s resource base, including access to copper ore, competitive energy costs, and supportive industrial policies. The project is expected to enhance the company’s presence across high-growth regions, including the Middle East, Europe, and Africa, while strengthening its downstream integration capabilities.

Risk Factors

Hailiang highlighted that ongoing geopolitical uncertainties in the Middle East could pose potential risks to project execution. Key concerns include site selection challenges, construction timelines, workforce safety, and operational continuity. The company is closely monitoring regional developments and their implications on project viability.

Outlook

The construction timeline for the proposed facility will be finalised post regulatory approvals, with execution dependent on prevailing market conditions, demand outlook, and geopolitical stability. The project underscores a long-term strategic commitment to capacity expansion and global market diversification.