Wall street Journal ist reporting about Two Chinese state-owned companies have signed a deal with Saudi-based Western Way For Industrial Development Co., or WWIDC, to invest in a 4 bln usd aluminium complex to be built next to the Red Sea. It cited Amr Al-Dabbagh, governor of the Saudi Arabian General Investment Authority, or Sagia, as saying the investment is among the largest ever made by China in the Middle East.
China National Machinery Industry Corp., better known as Sinomach, and China Nonferrous Metal Industry's Foreign Engineering & Construction Co., or NFC, will build a complex producing 1.6 mln metric tons of alumina and 700,000 tons of aluminum annually in Jizan Economic City, located in the south of Saudi Arabia, the report said.
The agreement also covers the entire engineering and fabrication of the complex, which will use imported bauxite from Greece.
The Chinese companies will also take a stake in the project, though the size has not been disclosed. Nor was it clear when the complex will start producing, the report said.
"What we have fits very well with what China is looking for," Al-Dabbagh told the WSJ.
"We have cheap energy and we have a strategic location," he added.