Tadweeer partners with China’s Chery to set up aluminum smelter in Saudi: CEO

National Environmental Recycling Co. (Tadweeer) signed an agreement with Chinese automobile manufacturer Chery to establish an aluminum smelter in Saudi Arabia with an annual production capacity of 50,000 tons, said CEO Nasser Aldueb.

In an interview with Al Arabiya TV, the CEO added that the expected investment in the plant will range between $10-$15 million (SAR 37.5-56.3 million) on an area estimated at 15,000 square meters. He noted that a task force has been formed to prepare the feasibility study, layouts, site selection, and final investment value.

According to the top executive, Tadweeer has had an agreement with Chery for three years to supply them with recycled metals, particularly aluminum used in car manufacturing. Tadweeer is the only company capable of producing this type of aluminum for the automotive industry. After three years of collaboration and increased supply volumes, the Chinese company decided to cooperate with Tadweeer to establish a smelter to produce this specialized aluminum.

Regarding the production lines purchased by the company for its plants in Riyadh to produce iron, the CEO clarified that these are additional lines to the existing ones and will add 30-35% to its revenues, with the actual impact expected to fully appear throughout 2026.

On the Industrial Development Fund’s (IDF) loan, Aldueb said the company currently considers it sufficient and does not expect to seek additional financing, highlighting that it will be used to expand, boost production capacity, and finance working capital.

As for the latest updates to Tadweeer’s transition to Tadawul’s Main Market, the CEO stated that there are some requirements the company is working to complete within three to four months, after which the date for the move to TASI will be determined.

According to Argaam’s data, Tadweeer’s board of directors approved in 2023 the company’s transition from the Nomu-Parallel Market to the Main Market and appointed SNB Capital as financial advisor to manage the transition process.