Dalip plans to set up a factory in Saudi Arabia, accelerating Chinese oil and gas pipe enterprises' expansion into the Middle East

China Dali Pu Holdings Co., Ltd. plans to establish an oil, natural gas, and hydrogen pipeline manufacturing center in the King Salman Energy Park (SPARK) in Saudi Arabia, to supply the Gulf region, Europe, and the US market.

This plan marks the further expansion of Chinese enterprises in the field of energy equipment manufacturing in the Middle East, and also adds new momentum to the cooperation between China and Saudi Arabia in the fields of energy and industry.

This article is the 320th in the "Saudi Business Insights" series by the A-Zhong Industry Research Institute, providing an in-depth introduction to industrial policies, laws and regulations, industry trends, market demands, competitive landscapes, and potential transaction opportunities in the fields of Chinese-Arab investment, trade, and engineering construction.

project background and planning

Dali普 Holding plans to invest 2.1 billion US dollars in the King Salman Energy Park (SPARK) to build an export-oriented oil, gas, and hydrogen pipeline manufacturing center.

The project has received approval from Saudi Arabia's Ministry of Investment, Ministry of Industry, Ministry of Energy, Saudi Aramco, and SPARK, and is expected to start construction by the end of this year, with completion within two years. Dalip will finance the project in two phases through capital increases and plans to dual list on the Saudi Stock Exchange (Tadawul).

2. Dali Pu's technological advantages and market positioning

Dali Pu Holdings is a leading Chinese manufacturer of oil and gas pipes, with products covering high collapse-resistant, corrosion-resistant, and high-temperature resistant oil-specific pipes that meet both API and non-API standards, as well as pipes for the development of shale gas, natural gas, and coalbed methane.

The company, with its advanced artificial intelligence technology, has a significant competitive advantage in the pipeline manufacturing field. This time, establishing a factory in Saudi Arabia, Dalip will further consolidate its position in the Middle East, European, and North American markets, while meeting the global energy transition's demand for new energy pipelines such as hydrogen.

3. The Strategic Significance of the Saudi Energy Park

Saudi King Energy Park (SPARK) is a key component of Saudi Arabia's "Vision 2030", aimed at creating a world-leading energy and industrial hub.

Dali普 chose to build a factory in SPARK, not only benefiting from Saudi Arabia's low-cost energy, well-developed logistics infrastructure, and abundant raw material resources, but also leveraging its geographical advantages to reach the Gulf region, Europe, and North American markets.

This layout is highly aligned with Saudi Arabia's strategy of promoting energy diversification and industrial upgrading.

4. Opportunities and Challenges for Chinese Enterprises Expanding into the Middle East

In recent years, with the deepening alignment between the "Belt and Road" initiative and Saudi Arabia's "Vision 2030," more and more Chinese companies have set their sights on the Middle Eastern market. Dali普's plan to build a factory in Saudi Arabia is yet another typical case of Chinese enterprises venturing into the Middle East, demonstrating its technical strength in high-end manufacturing and its capability for international layout. It seems there was an incomplete word "Dali普" in the original text, which I've kept as is, assuming it refers to a specific company name. If you meant a different spelling or if this is a known entity, please let me know so I can adjust accordingly.

Cooperation between China and Saudi Arabia in the energy sector has a long history, with Saudi Arabia being China's largest crude oil supplier, and China being an important investment and trade partner for Saudi Arabia.

In recent years, cooperation between the two sides has gradually expanded from traditional oil and gas trade to new energy, infrastructure, and technology fields.

Dali普's plan to build a factory in Saudi Arabia is a manifestation of the deepening energy cooperation between China and Saudi Arabia. In the future, as cooperation between the two countries in areas such as hydrogen energy and renewable energy continues to advance, Sino-Saudi energy cooperation will reach a higher level.

5. Conclusion

Dali普 Holding's establishment of a factory in Saudi Arabia is not only a significant breakthrough for Chinese enterprises in the high-end manufacturing sector, but also a demonstration of the deepening energy cooperation between China and Saudi Arabia.

In the future, as the Middle Eastern energy market continues to open up and the technological capabilities of Chinese enterprises continue to improve, the presence of Chinese companies in the Middle East will become more extensive, contributing Chinese wisdom and strength to the global energy transition and sustainable development.